Tech and China Pull the Most Cash

The single biggest money flow story of the past week is a sharp reversal in equity preferences. US-listed tech ETFs took in $7.6B net over seven days, making Information Technology the top sector by far. That stands in contrast to three months of near-flat flows in tech, where only $2.4B net arrived across the full quarter. Investors who were sitting on the fence are now moving.

Geography Flows

The US dominated geography for the week, pulling in a net $29.3B with a flow imbalance of 66.4. That means more than two-thirds of money moving through US ETFs was inbound. China was second with $13.7B net and an imbalance score of 79.9, reflecting strong and concentrated buying. Taiwan added $6.8B, almost entirely one-directional, with an imbalance of 97.

The notable divergence is Japan. Over three months it shed $7.6B net, the only major geography in negative territory for the quarter. This week it returned $1.9B, but the 3m trend still marks it as the weakest large market. Developed Europe also flipped negative this week at -$952M, despite posting $7.4B net inflow over the quarter. European ETFs appear to be consolidating after a strong run, with selling pressure edging ahead of buying (flow imbalance: 33.1).

Brazil stands out as a consistent receiver. It attracted $1.6B this week and $5.6B over three months, with imbalance scores above 73 in both windows.

Sector Rotation

The sharpest contrast in sectors sits between Tech and Financials. Tech gained $7.6B net this week. Financials lost $2.4B, with a flow imbalance of just 13.9, meaning outflows were running at nearly nine times inflows. Over three months, Financials were already the worst sector at -$10.5B net.

Industrials were also under pressure this week at -$814M. Over three months they shed $3.1B. That matters for the auto theme: German car registration data measured to lead General Motors revenue is running 133% above the same quarter last year, with the company reporting on 20 October. The sector-level ETF picture does not yet reflect that kind of optimism.

Healthcare held up with +$677M this week and +$2.98B over three months. Energy was modestly positive in both windows ($362M week, $2.3B quarter). Real Estate and Consumer Discretionary both bled this week, though Real Estate has held positive territory over the full quarter.

Asset Class and Strategy

Equities absorbed $67.3B net in a single week, dwarfing bonds at $11.3B. Over three months equity flows total $505B against $300B for fixed income. Both are clearly positive, but the equity-to-bond ratio is accelerating on the shorter window. Alternatives took in $2.5B this week with an imbalance of 88.8, its highest conviction reading across the asset classes. Commodities added $1.7B.

On strategy, vanilla passive remains the volume leader at $48.5B for the week. The week's standout story is growth versus active. Growth strategies pulled $3.4B with an imbalance of 84.2. Active ETFs took $3.97B but are well ahead over three months ($167.7B), making them the dominant strategy trend of the quarter by a wide margin. ESG reversed sharply, losing $519M this week after gaining $9.7B over three months. That is the clearest single strategy trend reversal in the data.

The overall tone is firmly risk-on. Equities lead all asset classes. Tech and growth strategies are back in demand this week. The only caution is in financials and European ETFs, where selling pressure is real and consistent.