Fixed income absorbed $14.4B last week as investors pulled a net $46.4B from US equity ETFs — the single biggest redemption story in current flow data. That reversal is stark against the three-month backdrop, where US-focused funds attracted $152.6B. The shift is sharp and sudden.
The US is bleeding cash right now. A $46.4B net outflow last week came despite $87.7B in gross inflows. Selling pressure dominated, with a flow imbalance of just 39.5 — firmly in outflow territory.
Non-US destinations picked up the slack. Global Ex-US funds pulled in $8.2B on the week, with a flow imbalance of 98.1 — near-total buying pressure, almost no selling. Canada added $1.6B. Switzerland drew $496M with a 97.1 imbalance.
Over three months, the US still leads with $152.6B in net inflows. But the weekly reversal signals a potential trend break. China attracted $50.1B over three months, yet bled $1.9B last week — another short-term reversal worth watching. South Korea was a 3m winner at $18.3B in but posted a $1.5B outflow this week. India, meanwhile, posted near-zero inflow last week with a flow imbalance of just 1.6 — strong selling pressure.
Tech took the hardest hit of any sector. Information Technology ETFs shed $2.3B last week, with a flow imbalance of only 42.7. That is a dramatic reversal from the three-month picture, where Tech led all sectors with $28.9B in net inflows.
Defensives and yield plays replaced it at the top. Real Estate pulled in $489M on the week. Utilities added $337M. Energy gained $293M. Communication Services attracted $260M. All four posted positive flow imbalances above 63.
Industrials and Financials were the other big weekly losers, shedding $1.3B and $1.1B respectively. Over three months, both sectors were solidly positive — Industrials at $2.1B and Financials at $786M. The weekly reversal in these cyclicals is consistent with a risk-off rotation.
Health Care sits near flat on the week at $149M, but was the second-largest 3m sector winner at $5.9B. That momentum has stalled.
Fixed Income was the clear destination for outflows from equities. Bond ETFs attracted $14.4B last week, with a flow imbalance of 65.8 — the only asset class in clear buying-pressure territory. Equities posted a $36.7B net outflow. Commodities slipped $207M.
Over three months, equities still dominate at $471.6B in net inflows, with bonds adding $266.9B. Both have been in demand, but this week equities cracked.
On strategy, Momentum ETFs collapsed — a $11.2B net outflow with a flow imbalance of just 1.4. That is near-total selling. Growth strategies dropped $6B. Multi-factor shed $8.3B. Fundamental strategies lost $8.3B.
Active ETFs were the lone bright spot, attracting $8.4B on the week with a 59.7 imbalance. Over three months, Active strategies pulled in $122.6B — second only to Vanilla passive at $254.7B. The active ETF trend remains intact even as passive factor strategies sell off.
The overall tone is firmly risk-off: money is leaving US equities, cyclicals, and factor strategies, and moving into bonds, defensives, non-US geographies, and active management.
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.
