Bonds and Industrials Lead as Stocks Bleed

U.S. equities faced their sharpest weekly ETF outflow in sight. Equity funds shed a net $46.5B over the past week. That compares to a $484B net inflow over three months. The reversal is stark.

Fixed income is picking up the slack. Bond ETFs pulled in $13.9B this week. That follows a $264.9B three-month inflow — making bonds the clearest sustained winner across both timeframes.

Geography Flows

The U.S. saw $44.7B leave domestic equity ETFs in one week. The flow imbalance of 41 confirms selling pressure dominates. Over three months, the picture was the opposite: $190.6B of net inflows. That three-month trend has sharply reversed.

China lost $3.9B this week (imbalance: 36). Over three months it attracted $43.7B. That divergence is the most dramatic trend shift in the geography table — China's short-term momentum has cracked.

Global ex-U.S. funds are quietly resilient. They added $1.1B this week with a flow imbalance of 88 — near-pure buying. Over three months, they gathered $21.8B. Developed Markets ex-U.S. also held positive on both timeframes.

India deteriorated. It lost $525M this week with an imbalance of just 3. Over three months it also bled $1.6B. That sustained outflow makes India a clear avoid right now.

Sector Rotation

Financials took the biggest sector hit. They shed $4.8B in one week with an imbalance of just 16 — heavy selling. Over three months, Financials was also slightly negative at -$1.0B. Consistent underperformance.

Industrials bucked the trend. They pulled in $1.7B this week with an imbalance of 68. Over three months, Industrials added $3.9B. That consistency signals genuine rotation into the sector.

Tech looked ugly on the weekly data: -$536M. But over three months, it led all sectors with $34.0B of inflows. The week-long dip may be profit-taking, not a trend reversal.

Health Care bled $1.2B this week but gained $4.7B over three months. Energy lost money on both timeframes. Communication Services gained $385M this week but lost $822M over three months — a short-term bounce in a longer-term outflow.

Asset Class and Strategy

Commodities attracted $2.5B this week with an imbalance of 73. Over three months, they added $20.8B. Gold and hard assets are in demand on both views.

On strategy, the weekly picture is defensive. Dividend ETFs pulled in $1.5B this week. Over three months, dividends added $13.3B. Active strategies swung from a $117.6B three-month inflow to a $3.6B weekly outflow. Growth and Value strategies both saw net redemptions this week after strong three-month inflows.

The overall tone is risk-off. Investors are rotating out of equities and growth strategies into bonds, commodities, dividends, and non-U.S. developed markets — at least for now.