US and Bonds Lead a Broad Risk-On Rally

The US market dominated ETF inflows this week. American-focused funds pulled in a net $23.8B over seven days. That dwarfs every other geography. It is consistent with the three-month trend, where US ETFs lead with $230.9B in cumulative net flows.

Geography Flows

Taiwan and Japan were the standout international winners. Taiwan drew $1.4B in net flows this week, with a remarkable flow imbalance of 87.3 — signalling near-one-sided buying pressure. Japan added $1.5B, though its imbalance was a more muted 53.9, reflecting heavy two-way trading.

Global ex-US funds posted a 97.0 flow imbalance this week. That is nearly all inflows and no outflows. It points to deliberate diversification away from domestic-only exposure.

India was the biggest geographic loser. It posted a $222M outflow this week. Flow imbalance hit just 2.9 — almost entirely selling. Over three months, India does not appear in the top net flow destinations either, confirming sustained pressure. Germany also bled $143M this week, with a flow imbalance of 20.3.

Brazil flipped notably. It attracted $211M this week with an imbalance of 89.6. Over three months, Brazil shows a $911M net outflow. That reversal is sharp and worth watching.

Sector Rotation

Tech took the top sector spot this week with $2.2B in net inflows. But its flow imbalance was only 60.9 — a lukewarm score. Over three months, Tech leads all sectors with $19.4B in cumulative flows, though its 3m imbalance sits at just 52.6, suggesting balanced two-way activity and no overwhelming conviction.

The real rotation story is in Industrials and Consumer Discretionary. Industrials pulled $894M this week. Over three months, the same sector attracted just $1.5B total — meaning this week alone was more than half of its entire quarterly haul. Consumer Discretionary posted $944M this week, with an imbalance of 86.2 — strong buying pressure. Its 3m net is only $623M, a clear acceleration.

Materials flipped negative. It shed $308M this week after generating $1.4B over three months. Energy stayed negative across both timeframes, losing $26M this week and $3.9B over three months. Communication Services went from a $715M three-month outflow to a $381M weekly inflow — another sharp reversal.

Asset Class and Strategy

Fixed Income was the week's second-biggest asset class story. Bonds drew $28.6B in net flows, with a flow imbalance of 76.6. That is notably higher than the 3m imbalance of 70.1 — bond buying is accelerating. Equities led at $34.9B but with a lower imbalance of 58.5.

Commodities attracted $3.3B this week, imbalance at 81.8 — a strong buying signal over a short window.

On strategy, Growth ($4.1B) and Value ($3.3B) both drew strong weekly flows. Active strategies pulled $2.3B this week, but over three months they have absorbed $129.5B — by far the largest 3m strategy flow outside passive Vanilla funds, suggesting a structural shift toward active management.

The overall tone is risk-on: equities, bonds, commodities, and growth strategies are all attracting capital simultaneously, with few meaningful retreats outside Energy and India.