US Bleeding Out While Global Funds Surge

The biggest story this week is a $4.7B net outflow from US-focused ETFs. That is a sharp reversal. Over the past three months, US funds pulled in $270B — the largest geographic inflow by a wide margin. Something shifted.

International funds are filling the gap. Global ETFs led all geography categories this week with $4.9B in net inflows and a flow imbalance of 74.6. Emerging Markets followed with $1.8B, showing near-unanimous buying pressure at a 93.5 imbalance score. Developed Markets Ex-North America added $1.5B. The message from geography flows is clear: money is rotating out of home bias and into international exposure.

Geography Flows

Japan attracted $2.2B in the past week. Over three months it has gathered $99.7B, the second-largest geography haul. South Korea was the week's biggest loser outside the US, shedding $1.5B in net outflows despite pulling in $37.2B over three months — a notable short-term reversal. China saw a small net outflow of $453M this week. Over three months, China still shows $33.9B in net inflows, so the weekly dip is a pause rather than a trend break. Global Ex-US funds hit a flow imbalance of 95.7 this week, indicating almost pure buying pressure from investors diversifying away from domestic markets.

Sector Rotation

Tech led all sectors with $1.7B in weekly inflows. Over three months it has attracted $40.8B — well ahead of any other sector. But the weekly flow imbalance of 57.8 is only mildly bullish. Financials added $551M this week and Real Estate $225M — both pointing to a mild tilt toward rate-sensitive sectors. The losers this week were Utilities (-$566M), Consumer Discretionary (-$460M), Materials (-$369M), and Industrials (-$287M). Energy scraped a thin $71M inflow. Over three months, Energy is actually the only sector with a net outflow at -$4.1B, making it the clearest sector to avoid by institutional money over the medium term.

Asset Class and Strategy

Every major asset class attracted net inflows this week. Equity led with $10.3B. Fixed Income was close behind at $9.1B, with a flow imbalance of 67.6 — indicating genuine buying, not just rotation. Commodities added $1.8B and Alternatives $1.6B. This broad participation suggests risk appetite is spread across the board, not concentrated.

On strategy, Active management was the top flow recipient at $5.3B. It had a flow imbalance of 73.9, the strongest of any major strategy category. Price-weighted funds bled $4.2B — the only significant loser. ESG strategies attracted $2.0B and Dividends pulled in $1.4B, both showing consistent inflows across both the one-week and three-month windows. Value ($493M) edged out Growth ($292M) this week, a mild shift from a three-month picture where both are running near-equal inflows around $9B each.

The overall tone is cautiously risk-on. Money is moving, but it is spreading across geographies, asset classes, and strategies rather than concentrating — with the notable exception of a clear and sudden pullback from US-only exposure.