China and Tech Dominate Weekly ETF Flows

Taiwan export orders surged 69% year-on-year in September 2026. That number helps explain one of the week's most striking signals: ETF investors are piling into Asia's tech heartland at a pace that stands out even against a strong three-month trend.

Geography Flows

China pulled in the largest weekly net inflow of any region at $15.1B, with a flow imbalance of 79.8. That signals strong buying pressure, not just elevated turnover. Taiwan added $7.6B on the week, the most lopsided flow of any major market, with a 97.1 imbalance score. The combination of the two tells a consistent story: investors are chasing the Asia tech supply chain following the 69% export order surge reported by Taiwan's trade data.

The U.S. attracted $13.7B, second only to China. That is a large absolute number, but the 57.7 imbalance score is notably softer, meaning two-way flows are more evenly matched. Japan took in $3.7B on the week, though over three months it shows a net outflow of $6.6B, making the weekly bounce look tentative rather than a genuine reversal.

Developed Europe was the clearest loser. It saw a $396M net outflow on the week, with a flow imbalance of just 40.6. Over three months, Europe had attracted $7.4B, so this is a meaningful short-term reversal. Spain posted near-zero inflows against heavy selling. Germany and India were also in outflow territory for the week.

Sector Rotation

Information Technology absorbed $7.3B on the week, the biggest sector inflow by a wide margin. Its 68.4 imbalance score confirms genuine buying conviction. Over three months, though, IT's net inflow is only $3.3B, with gross flows nearly balanced at $130B in versus $127B out. That gap between the weekly surge and the flat three-month picture is the week's clearest rotation signal: money that had been sitting on the sidelines is now moving decisively back into tech.

Financials shed $940M on the week. That is a sharp contrast with the three-month picture, where Financials is the single biggest sector outflow at $9B. The selling is not new, but it is accelerating. Industrials dropped $749M on the week, reversing part of the $14B three-month inflow that had made it the strongest defensive rotation trade over the summer.

Consumer Staples and Materials were also net sellers on the week. Real Estate, Utilities, and Energy all saw modest outflows after attracting consistent inflows over three months. Health Care was the one quiet positive, adding $196M.

Asset Class and Strategy

Equities drew $60.4B on the week, the dominant asset class by far. Fixed income added $12.9B, maintaining the steady bid that has built up $286B over three months. Commodities attracted $2.1B and Alternatives $2.7B, both with strong imbalance scores above 70, suggesting niche but focused buying.

On strategy, passive Vanilla funds took in $43.8B. Active ETFs added $7.3B with a 73.9 imbalance score, and over three months Active has absorbed $168B against Vanilla's $202B. The Active share of flows remains high. Growth strategies brought in $3.2B on the week. Value added $2.1B. Both outpaced Dividends, which attracted just $100M despite having been a consistent three-month recipient.

Momentum strategies were the sharpest strategy reversal. They received a small positive this week but are $3.7B in net outflow over three months. Low volatility funds saw $191M of outflows on the week.

The overall tone is risk-on. Equities dominate, passive and active growth strategies are leading, and the geography rotation points squarely toward Asia's tech complex. Europe and defensive sectors are losing ground.