Edited by Peter Hillerberg2 min readStories are generated from ORTEX data and reviewed by the ORTEX team. How we publish
Equities absorbed $113B in net ETF inflows last week. That dwarfed every other asset class combined. The tone is unmistakably risk-on, with buying pressure across geographies, sectors and strategies pointing in the same direction.
The US pulled in $90.1B in net flows over the week. A flow imbalance of 75 confirms buyers were firmly in control. Japan was the standout story elsewhere, collecting $12.0B last week alone. That compares to just $7.6B net over the full three months, meaning Japan's one-week haul exceeded its entire quarterly figure. Buying pressure there was 79, well above the balanced midpoint of 50.
China attracted $4.0B in the week, with a flow imbalance of 85. That is the highest of any major geography and reflects persistent institutional demand. Over three months China has drawn $22.3B net, the third-largest geography by absolute flow. Developed Markets ex-US and Global ex-US also saw strong weekly buying at 96 imbalance each, suggesting broad appetite for international equity exposure beyond just the headline US allocation.
Mexico and Israel were the main geographic losers this week, with outflows of $317M and $294M respectively.
Financials saw the heaviest sector outflow last week at $1.9B net. Industrials followed with $744M of selling. Both are also deeply in the red over three months: IT led sector outflows over 3m at $11.1B net, followed by Financials at $6.0B. The pattern suggests institutional money has been rotating away from the economy-sensitive sectors for several months.
Utilities collected $701M in the week. Health Care added $641M and Communication Services $546M. All three are defensively or income-oriented. That same trio was among the top gainers over three months too, reinforcing a slow rotation away from cyclicals and into quality and yield. Real Estate and Consumer Staples also posted positive weekly flows.
Fixed income brought in $24.0B for the week alongside equities' $113B. That dual positive reading, both risk assets and bonds attracting money simultaneously, suggests allocation-driven buying rather than a pure risk-on shift. Over three months, the picture is similar: $518B into equities against $294B into fixed income. Both are well bid.
The most striking strategy signal is the dominance of active ETFs. Active strategies drew $82.4B net last week, by far the largest strategy flow. The imbalance was 95, meaning almost all active ETF money moved in one direction. Over three months, active funds brought in $174B net against vanilla index funds' $221B. Active is closing the gap fast.
Fundamental strategies (factor-based, non-market-cap-weighted) also attracted $15.0B in the week with a 97 imbalance. Price-weighted strategies shed $2.2B, continuing a negative three-month trend of $8.5B in outflows.
The overall picture is a broad risk-on allocation with a tilt toward defensives at the sector level, strong international demand particularly in Japan and China, and growing preference for active management over passive index tracking.
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.
