Asia Leads the Money, Tech Splits in Two

The biggest story in ETF flows this week is Taiwan. It pulled in $6.8B over the past seven days, a flow_imbalance reading of 97, meaning almost every dollar coming in stayed in. Over three months, Taiwan has attracted $17.1B. That makes it one of the most consistently bought markets on the planet right now. ORTEX alternative data puts context behind it: Taiwan export orders jumped 74% year-on-year in September 2026, reaching $95.7B, a reading that helps explain why investors keep bidding the market up.

Geography Flows: Asia Dominates, Europe Bleeds

The US remains the single largest destination by volume, taking in a net $29.3B this week. But the flow_imbalance of 66 is ordinary by comparison to Taiwan's 97 and Brazil's 97. Those two smaller markets are seeing near-unanimous buying pressure relative to their size.

China attracted $13.7B in net inflows this week, with a flow_imbalance of 80. Over three months, it has pulled $21.1B. The one-week pace is actually accelerating, which is a genuine trend shift rather than a catch-up bounce.

Europe is the clear loser. Developed Europe saw $952M in net outflows this week, with a flow_imbalance of just 33, deep into selling territory. Over three months, Europe had been mildly positive at $7.4B, so this week marks a sharp reversal. Spain posted near-zero inflows against heavy selling. Italy and France also bled cash. Japan flipped negative over three months (down $7.6B), and this week was only marginally positive.

The MSCI World index radar adds texture here. The November quarterly review, with ranks locked on 19 October, has nine potential deletions in play. McCormick carries an 80% deletion probability, facing $692M of forced selling. The Carlyle Group sits at 70%, with $567M at stake. Announcements land 11 November. Passive trackers will need to sell regardless of price.

Sector Rotation: Tech Stays on Top, Financials Hit Hard

Information Technology pulled in $7.6B this week, the most of any sector. But over three months, the same sector has attracted only $2.4B on a much larger gross trading volume. That gap suggests choppier conditions below the surface. The one-week flow_imbalance of 68 still leans positive.

Financials are the sharpest reversal. This week, the sector bled $2.4B with a flow_imbalance of just 14, the worst reading across any sector. Over three months, Financials had been the biggest outflow at $10.5B. The selling is accelerating, not abating.

Industrials flipped from a $3.1B outflow over three months to an $814M outflow this week, a smaller but continuing drain. Health Care gathered $677M this week and $2.98B over three months, showing steady and consistent inflows. Energy attracted $362M this week, building on $2.3B over three months.

Asset Class and Strategy: Bonds Hold Firm, Active Funds Surge

Equities led with $68.9B in net inflows this week. Fixed Income added $16B, continuing a pattern from the three-month period where it drew $300B, close to 60% of the equity total. That ratio shows investors are running equities and bonds together rather than choosing between them. Commodities attracted $2.1B this week and $31.9B over three months. Currency ETFs are the only asset class in outflow this week at minus $624M.

On strategy, Vanilla passive funds took in $48.5B this week as expected. The more interesting signal is Active management, which pulled $3.96B this week. Over three months, Active funds drew $167.6B, the second largest strategy total and running at 79% of Vanilla's pace. That ratio is unusually high. Growth strategies attracted $3.4B this week with a flow_imbalance of 84. Momentum funds added $133M this week, a small number that matters given they were down $3.4B over three months. ESG stayed in outflow this week at minus $519M, continuing the pattern of redemptions seen across the three-month window.

The overall tone is risk-on with a selective tilt: Asia and tech are drawing fresh money, Financials and continental Europe are being reduced, and the bond bid remains solid enough to suggest investors are not fully committed to any single direction.