Asia Grabs the Cash as Tech Rules Sector Flows

China and Taiwan pulled in the biggest regional hauls this week. China ETFs attracted $15.1B in net inflows over seven days, with a flow imbalance of 79.8. Taiwan added $7.6B, nearly all of it fresh money. That imbalance reading of 97.1 means sellers barely showed up. Taiwan export orders give this context: orders by product group hit $95.7B in September, up 74% on the same month last year, according to ORTEX Alt Data. The semiconductor and electronics boom feeding that number is clearly visible in where ETF money went.

Over three months, the picture shifts. The U.S. still leads by volume, with $284B of net inflows. But the weekly reading shows the gap narrowing. China attracted just $13.4B over the full three months versus $15.1B in the last week alone. That acceleration is the story.

Geography Flows

Developed Europe posted a $396M outflow over the past week. Over three months it was a net receiver of $7.4B, so the reversal is fresh. Spain and Germany both bled money in the seven-day window. Japan flipped the other way: $3.7B into Japanese ETFs this week, against a three-month net outflow of $6.6B. That is a meaningful turn. South Korea drew $2.3B on the week. Brazil added $1.6B, one of the tidiest flows in the emerging market space with a 98.4 imbalance score.

Sector Rotation

Information Technology dominated at the sector level. IT ETFs pulled in $7.3B net in the week, the largest of any sector. That reverses the three-month picture, where IT was essentially flat at $3.3B on far higher gross volumes. The weekly imbalance of 68.4 points to genuine buying pressure, not just index rebalancing.

The rest of the sector table ran red. Financials lost $940M in the week. That stands against a $9B outflow over three months, making it the weakest sector on either horizon. Industrials shed $749M this week. Over three months Industrials were also in outflow at $815M. Both sectors face consistent selling pressure.

Health Care held its ground. It collected $196M this week and $3.5B over three months, making it one of the more consistent destinations.

Asset Class and Strategy

Equities took in $60.4B on the week, well ahead of fixed income at $12.9B. Over three months both have attracted substantial flows: $507B into equities, $286B into bonds. The ratio has stayed broadly stable, suggesting no dramatic shift in risk appetite on that metric alone.

Alternatives drew $2.7B this week with an 88.9 imbalance. That is the cleanest one-sided buying seen across any asset class in the period. Commodities added $2.1B.

On strategy, vanilla index funds collected $43.8B this week and $202B over three months. Active strategies posted $7.3B this week and $168B over three months. The gap is narrowing. Growth added $3.2B this week against $11.8B over three months, while value brought in $2.1B versus $8.6B. Both growth and value are pulling capital, with no clear tilt toward defensiveness.

Momentum ETFs lost $3.7B over three months, even as this week produced a small $171M inflow. Low-volatility funds bled $191M on the week, confirming the risk-on tone.

The overall picture for the week is unambiguously risk-on: equities over bonds, growth over safety, Asia over Europe, and technology leading every other sector by a wide margin.