Edited by Peter Hillerberg3 min readStories are generated from ORTEX data and reviewed by the ORTEX team. How we publish
The week's dominant story is a sharp rotation into US equities and technology ETFs. Information Technology pulled in $5.4B net this week alone. That is the biggest single-sector inflow by a wide margin. It comes as US core CPI hit its highest reading since the series began in 1997 and the annual rate rose to 3.7% in September, the largest September reading in two years, according to ORTEX Alt Data.
The US captured $32.9B in net ETF flows over the past week. Flow imbalance sat at 72.5 out of 100, a clear tilt toward buying. China added $7.3B, with a similarly strong 73.6 imbalance. Taiwan drew $2.9B, with imbalance at 95.2, suggesting almost one-sided buying pressure.
The contrast with Europe is stark. Developed Europe posted a $723M outflow this week, with imbalance at just 38.4. Japan lost $612M, with imbalance at 38.1. Both readings point to active selling pressure. Over three months, Europe's picture looks better: $8.0B net inflow over that period. This week's reversal may reflect inflation concerns spreading from the US, where record core CPI prints are reviving rate expectations.
India also turned negative this week, with $78M in net outflows and a flow imbalance of just 7.1. Over three months, India has seen $1.2B in net outflows, suggesting this is a sustained trend rather than a short-term blip.
Information Technology's $5.4B weekly inflow dwarfs all other sectors. Energy added $1.1B and Health Care $826M. Consumer Staples attracted $581M, a mild defensive tilt.
The other side of the ledger is more telling. Industrials saw $1.1B in net outflows this week, with imbalance at just 30.3. Real Estate lost $385M. Materials shed $187M. Over three months, the Industrials picture was already negative at -$611M. This week's selling accelerates that trend.
Financials are the sharpest three-month-to-one-week reversal. Over three months, Financials posted a $6.6B net outflow, the largest sector outflow in that window. This week, the number is nearly flat at just $5M net. The selling pressure has stalled, though it has not yet reversed.
Equity ETFs took in $52.6B net this week. Fixed Income added $14.2B, a flow imbalance of 66.5. Both asset classes are attracting money, a broadly risk-on posture with some defensive hedging in bonds. Over three months, Fixed Income has pulled in $298.5B against equities' $522B. The bond bid is meaningful and persistent.
Commodities drew only $383M net this week, a weak 55.1 imbalance, despite the inflationary macro backdrop. Over three months they attracted $30.6B, so the weekly number looks like a pause rather than a reversal.
On strategy, Vanilla passive funds led with $29.8B in weekly inflows. Active strategies added $4.7B this week and a substantial $171.4B over three months. Active is gaining share. Growth funds drew $2.7B this week with an 85.6 imbalance, the strongest reading among strategy types. ESG posted $409M in outflows this week, reversing its three-month positive trend of $8.9B. Low Volatility also saw $257M in outflows, imbalance of 18.5, consistent with a market leaning into risk rather than away from it.
The overall tone is risk-on, with a clear preference for US equities and technology, bond flows providing a partial hedge, and Europe plus Japan facing near-term selling pressure.
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.
