Money Flows Out of US, Into Everything Else

The week's biggest story is a sharp reversal in US equity ETF flows. US-focused funds posted a net $987M outflow over the past week. Over three months, the US was the undisputed leader with $265B in net inflows. That flip is the clearest signal of the week.

Geography Flows

Money is rotating hard into international markets. Developed Markets ex-US funds attracted $659M this week with a flow imbalance of 97 — near-total buying pressure. Emerging Markets added $1.2B with an imbalance score of 89.1, pointing to strong conviction behind the move.

China pulled in $1.5B net on the week. Over three months, China's net inflow was $35B, running solidly positive. Japan added $997M this week. Over three months it gathered $96B, second only to the US in total inflows.

Brazil flipped from a $1.2B net outflow over three months to a $324M inflow this week. That is a notable reversal. North America (ex-US) funds moved the other way — $458M out this week versus $2B in over three months.

Sector Rotation

Technology remains the top sector by net inflows — $1.2B this week and $39.4B over three months. But flow imbalance sits at just 54.8, showing the buying is not dominant.

The sharpest week-vs-trend reversal is in Industrials. Over three months, Industrials attracted $2.8B in net flows. This week it bled $369M. That is a clean short-term rotation out of a sector that was performing well.

Consumer Discretionary also weakened. It is barely positive over three months ($238M) but shed $498M this week, with a low imbalance of 24.4 — sellers firmly in control.

Financials held up. The sector brought in $317M this week and $4.2B over three months.

Energy flipped negative over three months, down $4B. This week it posted a small $87M net inflow — too early to call a recovery.

Asset Class and Strategy

Fixed Income led all asset classes this week with $20.3B in net inflows. Equity still attracted $13.1B, but the bond haul was notably larger. Over three months, equities dominate at $663B vs bonds at $233B — so this week's bond-heavy tilt is a meaningful short-term shift.

Growth strategies pulled in $1.25B this week with an imbalance of 84.6 — the highest buying pressure in the strategy category. Active management gathered $1.1B this week, and over three months it is the second-largest strategy flow at $181.5B, well ahead of any factor strategy.

ESG added $1.6B this week with an imbalance of 74.5. Over three months it has attracted $19.7B, confirming sustained demand.

Low Volatility ETFs also drew $277M this week, with imbalance at 87.7 — consistent with investors hedging while rotating internationally.

The overall tone is cautious rotation: bond buying is up, the US is losing ground, and money is hunting for yield and diversification outside North America.