Fixed Income claimed the top spot this week. Bond ETFs pulled in $34.6B net, edging ahead of equities in flow terms. That marks a meaningful shift. Over three months, equities dominate with $553B net versus bonds at $254B. In a single week, the gap has narrowed sharply.
The U.S. remains the dominant destination. American-focused ETFs attracted $20.8B net this week. That is consistent with the three-month picture, where U.S. flows total $219.6B. China came in second at $2.7B for the week, continuing a strong three-month run of $42.6B. Both regions show a flow imbalance above 55, indicating sustained buying pressure.
The notable shift is South Korea. It shed $2.3B this week, with a flow imbalance of just 29.5. Over three months, Korea actually attracted $34.4B. That short-term reversal stands out. Germany also bled again, losing $110M this week and nearly $1B over three months. India flipped negative this week at -$67M, despite modest three-month inflows of $213M — a soft signal worth watching.
Taiwan and Japan both recorded positive weekly flows of around $1.3B and $1.25B respectively. Both have been consistent three-month inflow recipients too.
Technology ETFs were the biggest loser this week. The sector bled $1.16B in net outflows. That is a stark reversal. Over three months, Tech led all sectors with $19.8B in net inflows. Sellers appear to be taking profits after that run.
Financials stepped up to fill the gap. The sector drew $853M this week, with a healthy imbalance of 68.6. Healthcare added $204M and Utilities collected $298M. Both are defensive plays. Real Estate contributed $158M. The rotation out of growth-oriented Tech and into defensives and financials is the clearest sector signal this week.
Energy also lost $112M in the week, though its three-month deficit is much larger at -$3.7B. Materials shed $379M on the week despite posting $1.4B over three months — another short-term reversal.
Fixed income's weekly lead over equities signals a more cautious tone. Bonds posted a flow imbalance of 76.0 this week, showing strong one-sided buying. Commodities added $3.2B, also with a 76.1 imbalance. That combination — bonds and commodities attracting capital simultaneously — often reflects inflation hedging or risk reduction.
On strategy, Growth ETFs led with $5.5B in weekly inflows and a 91.4 imbalance. That appears to contradict the Tech selloff. Value followed at $4B. Dividend strategies attracted $1.2B with an 88.3 imbalance — a level consistent with defensive repositioning.
Active management gathered $1.9B this week. Over three months, active strategies pulled $141B, nearly half the vanilla passive total. That gap is closing as flows increasingly favour actively managed products.
ESG strategies shed $131M this week. Over three months they had attracted $18.9B. That weekly dip may reflect profit-taking rather than trend reversal.
The overall tone leans cautiously risk-on. Money is still flowing into equities and growth, but the weekly pivot toward bonds, defensives, and commodities suggests some institutional hedging is quietly underway.
ORTEX Market Intelligence content is generated by AI from a snapshot of ORTEX's proprietary data. Content is informational only and does not constitute investment advice.
