Edited by Peter Hillerberg3 min readStories are generated from ORTEX data and reviewed by the ORTEX team. How we publish
Active funds dominated the past week. They pulled in $81B of net inflows, against $16B for vanilla passive strategies. That gap is the sharpest signal in the data right now: investors are not just buying the market, they are paying up for active stock selection.
The US market absorbed $86B in net inflows over the past week. Flow imbalance hit 77.9, a strong buying pressure reading. Over three months, the US remains the anchor, with $274B of net flows, but the imbalance there is a much tamer 56.7. Money keeps arriving, but the pace of the weekly surge stands out.
Brazil was the biggest surprise of the week. Net inflows reached $2.3B with a flow imbalance of 95.0, near the top of the scale. Over three months, Brazil has attracted $2.4B total. The past week almost matched the entire quarter. That is a sharp acceleration.
Japan flipped. Over three months, Japan bled $8.1B in net outflows. This week it lost another $1.9B. The imbalance sits at just 32.8, still in selling-pressure territory. The Korean air traffic data adds texture: record September passenger volumes of 38.8 million support a broader Asia-Pacific travel recovery, but equity flows into Japan have not followed.
South Korea attracted $1.6B this week and $7.0B over three months. The imbalance of 66.9 signals genuine buying pressure. Global Ex-US and Developed Markets Ex-US funds also posted clean inflows with imbalances above 90, suggesting broad non-US appetite alongside the US surge.
Mexico and Latin America remained in outflow. Mexico lost $312M this week on a flow imbalance of just 2.2, nearly pure selling. The three-month picture shows $900M gone. That trend is not reversing.
Technology is the standout reversal. Over three months, Information Technology ETFs have bled $8.1B in net outflows. This week, they flipped to a $2.4B inflow. The imbalance is still only 60.9, not emphatic, but the directional shift matters.
Financials stayed negative both on the week (down $1.3B) and over three months (down $5.0B). That is the most persistent outflow theme in the sector data.
Utilities attracted $446M this week and $2.7B over three months. The flow imbalance of 77.6 this week is the highest consistent reading among sectors. Healthcare added $334M this week and $3.0B over the quarter. Both defensive sectors are drawing steady money.
Energy picked up $361M this week. Over three months it is barely positive at $374M. The sector is treading water.
Consumer Discretionary spent the quarter in inflow ($1.1B over 3m) but tipped negative this week, down $28M. A small move, but worth watching.
Equities dominated both periods. This week they drew $98B, Fixed Income $20B. Over three months, equities are up $512B versus $294B for bonds. Both asset classes are in clear inflow, a risk-on tone with a bond underpinning.
Commodities are a three-month story with $30.6B of net inflows and an imbalance of 63.7. This week, net flow was just $170M. The three-month momentum has stalled.
Currencies flipped. Over three months, currency ETFs pulled in $8.7B. This week they bled $485M. Short-term dollar hedging or currency positioning appears to be unwinding.
On strategy, Active funds are seeing a striking divergence from three-month trends. Over the quarter, vanilla passive strategies dominated with $231B versus $176B for active. This week, active funds pulled in $81B against vanilla's $16B. That is a sharp one-week rotation into active management. Dividends, which attracted $12.5B over three months, turned negative this week at -$123M.
The overall tone is risk-on, with the US and Brazil leading geography, Tech staging a weekly comeback after a quarter of selling, and active managers capturing the bulk of new money right now.
ORTEX Market Intelligence content is generated by AI from a snapshot of ORTEX's proprietary data and reviewed by the ORTEX team. Content is informational only and does not constitute investment advice.
