Fixed Income Takes the Week's Top Spot

Fixed income pulled in $20B in net new money this week. That beat every other asset class by a wide margin. Equities added $8.5B but look less impressive beside the bond surge.

The gap matters. Over three months, equities dominate with $560B in net flows versus $263B for fixed income. Bonds winning the week signals a near-term shift in risk appetite.

Geography Flows

Global and Developed Markets Ex-U.S. ETFs led the week on geography. Global funds drew $7B, with a flow imbalance of 82 — strong one-way buying. Developed Markets Ex-U.S. posted $2.8B with an imbalance of 99.5, meaning almost all money moved in one direction.

The big reversal story is South Korea. It pulled in $20.9B over three months. This week it bled $3B out, with a flow imbalance of just 24. Sellers took control. China follows the same pattern — $41.5B in over three months, then a $2.7B outflow this week with imbalance at 40.

Emerging Markets saw $19.7B in over three months. This week reversed to a $2.5B outflow with imbalance of just 20. The pivot away from EM is sharp and broad.

Europe also struggled. Developed Europe went from $7.6B inflow over three months to a $1.1B outflow this week. India shed $579M this week with almost no buying at all — imbalance of just 0.9.

Japan held steady. It attracted $1.2B this week on top of $32.5B over three months.

Sector Rotation

Financials had the worst week of any sector. It lost $3.2B with a flow imbalance of just 24. Over three months, Financials were nearly flat at $496M in. That's a dramatic deterioration.

Information Technology held its ground. It pulled $2.2B this week and leads all sectors over three months with $39.3B. The sector's three-month trend is intact.

Industrials attracted $1.7B this week with an imbalance of 74 — solid buying pressure. Consumer Discretionary added $965M with imbalance of 89, showing strong conviction.

Energy reversed. It bled $567M this week after suffering $3.7B in outflows over three months — the only sector with consistent outflows across both timeframes.

Asset Class and Strategy

Alternatives pulled in $3.3B this week with imbalance at 86. Commodities added $2.4B. Both suggest investors are hedging alongside bonds.

On strategy, the standout is the rotation away from passive Vanilla. Vanilla funds lost $16.5B this week — the largest single outflow of any strategy. Over three months they gained $261.7B, so this week's reversal is a sharp break.

Money poured instead into Fundamental ($9.4B), Multi-factor ($8.7B), and Momentum ($6.4B) strategies. The Momentum imbalance of 98 signals near-unanimous buying.

Active strategies gained $124B over three months but turned to a $650M outflow this week — a mild pause rather than a reversal.

The overall tone is defensive rotation: bonds over stocks, developed over emerging, and factor-based strategies over passive index funds.