Edited by Peter Hillerberg3 min readStories are generated from ORTEX data and reviewed by the ORTEX team. How we publish
The single biggest story this week is Japan. ETFs targeting Japan pulled in $12.1B in the past week alone, with a flow imbalance of 79.2, the highest of any major geography. That compares to just $7.6B over the full three months. The weekly pace is running at more than six times the quarterly average. Money is accelerating into Japanese equities in a way that stands out across the entire fund flow landscape.
The US remains the anchor, taking in $85B net in the past week, with a flow imbalance of 74.7, well above its 3m imbalance of 56.6. That jump in imbalance is significant. Over three months, flows were more balanced between buyers and sellers. This week, buyers are firmly in control.
Brazil also caught attention. Its 1-week flow imbalance hit 94.9, the second highest of any geography, on net inflows of $2.8B. Over three months, Brazil has taken in $3.1B total, so this week's number represents nearly the entire quarter's worth of buying compressed into a few days.
The outflows are concentrated in Mexico ($317M net negative) and Israel ($207M negative) over the past week. Both have been weak over three months too. China shows a sharp contrast: $22.3B of net inflows over three months, but just $51M this week. The 3m trend is very much alive but the weekly momentum has stalled.
Developed Markets Ex-US funds posted strong 1-week inflows of $1.8B and a high flow imbalance of 95.7. Over three months they attracted $18.4B. The ex-US trade is broadening, and Japan is leading it.
The sharpest reversal sits in Technology. Over three months, IT was the biggest sector loser, bleeding $11.1B in net outflows. This week, it swung to $737M of net inflows, with balanced flows (imbalance 52.4). The selling pressure that dominated the quarter has stopped, at least for now.
Financials tell the opposite story. Financials was the worst sector this week, losing $1.9B with a flow imbalance of just 30. Over three months it bled $6B. Selling in Financials is consistent and deepening.
Utilities and Health Care attracted buyers both on a weekly and quarterly basis. Utilities pulled in $701M this week and $3B over three months. Health Care added $641M this week and $3B over three months. Both sectors are drawing defensive money at a steady pace.
Industrials reversed sharply. Over the quarter, Industrials was broadly flat ($228M net). This week it shed $744M, with a flow imbalance of only 38.2. Sellers have arrived suddenly.
Equities and fixed income are both attracting money simultaneously, a sign of broad risk appetite rather than a simple rotation. Equities took in $113B this week (flow imbalance 74.1). Bonds added $24B (flow imbalance 72.4). Commodities slipped into slight outflow territory for the week, down $220M, after taking in $30.6B over three months.
On strategy, the standout is the dominance of Active funds. They pulled in $82.4B this week with a flow imbalance of 95, the strongest buying pressure of any strategy category. Over three months, Active funds gathered $174.4B. The shift to active management is not a new story, but the weekly intensity has picked up sharply. Fundamental strategies also showed strong imbalance at 97.1, adding $15B this week.
Dividends strategies reversed. They attracted $12.2B over three months but shed $146M this week. Low Volatility posted a similar pattern: positive over three months, negative this week. Defensive income plays appear to be losing ground to higher-beta active bets as buyers grow more aggressive.
The overall tone is risk-on. The US and Japan are taking the bulk of equity inflows. Tech is stabilising. Active and fundamental strategies are leading the charge.
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.
