Money Pours Into Bonds and US Equities

Fixed income is the standout story this week. ETFs tracking bonds pulled in $28.6B in net new money over seven days. That compares to $259B over three months — a pace that has accelerated sharply. The flow imbalance sits at 76.6, signalling strong and consistent buying pressure rather than a two-way tug-of-war.

Equity ETFs remain the largest bucket by volume. They attracted $34.9B in net flows last week. But with a flow imbalance of just 58.5, the buying is not one-sided. Sellers are active too. Commodities added $3.3B on a flow imbalance of 81.8, pointing to sustained demand rather than short-term noise.

Geography Flows

The US remains the dominant destination. American equity ETFs took in $23.8B last week, far ahead of every other region. Global ETFs added $3.1B. Taiwan drew $1.4B with a striking flow imbalance of 87.3 — almost all buy-side activity and almost no selling.

The notable reversal is India. It posted an outflow of $222M this week with a flow imbalance of just 2.9 — near-total selling dominance. Over three months, India has been a modest receiver of capital. That shift deserves attention. Germany also bled $143M this week and has lost $1.1B over three months. China, by contrast, looks balanced: it attracted $374M last week but a massive $43.6B over three months, making it the third-largest geography by 3-month flows.

Sector Rotation

Information Technology leads all sectors with $2.2B of inflows last week. Consumer Discretionary added $944M, and Industrials followed at $894M. Financials took in $768M.

The key reversal: Materials flipped to a $308M outflow this week. Over three months, Materials attracted $1.4B — so the 1-week swing is a meaningful break in trend. Energy is also leaking money. It posted a $26M outflow this week and has shed $3.9B over three months, making it the worst-performing sector by 3-month net flows.

Communication Services is another quiet loser over three months, down $715M over the period, despite posting a positive $381M week.

Asset Class and Strategy

Both bonds and equities are attracting capital simultaneously. That is a risk-on and risk-off signal running in parallel. Active ETFs are winning share over the longer period. They gathered $129B over three months versus just $2.3B in passive Vanilla over the same relative basis — though Vanilla dominates by raw size.

This week, Growth and Value strategies are both drawing strong inflows — $4.1B and $3.3B respectively. Dividend ETFs attracted $1.7B. That combination suggests investors are not committed to a single style.

The overall tone is broadly risk-on. Equities and bonds are both attracting capital, cyclical sectors like Industrials and Financials are gaining, and defensive plays like India and Energy are losing ground.