China and Taiwan Pull in Fresh ETF Cash

China topped the geography leaderboard this week. ETFs focused on the country took in $12.0B net, with a flow imbalance of 76, well into buying-pressure territory. That makes it the single biggest regional winner over the past five days.

Taiwan was close behind at $5.6B net. The flow imbalance hit 96.4, the highest of any geography tracked, meaning almost every dollar moving was an inflow. That reading sits alongside a record-breaking real-economy backdrop: Taiwan's total export orders reached $114.2B in September, the largest since 1984, according to ORTEX Alt Data. Orders in the product group category hit $95.7B, up from $55.1B in the same month last year.

Japan added $4.7B on the week. Over three months, though, Japan tells a different story. It is the only major geography in outflow over the 3m window, bleeding $6.5B. The 1w bounce looks like a tactical trade rather than a conviction shift.

The US pulled in $8.2B for the week, though its flow imbalance of just 54.7 signals balanced two-way activity. Over three months it remains the volume anchor at $303B net, but that scale masks a crowded and competitive picture.

Geography Flows

The clearest divergence sits in emerging markets. Emerging Markets Ex-China ETFs posted a flow imbalance of 99.4 this week, taking in $714M with virtually no offsetting outflow. Brazil added $822M. Over three months both remain positive, suggesting a durable trend rather than a spike.

India reversed over both windows. It shed $40M this week and $1.2B over three months, with a 3m flow imbalance of just 24. North America (ex-US) was the only developed-market geography in outflow this week at minus $679M.

Sector Rotation

Technology led sector inflows over the week at $5.1B net, though its flow imbalance of 61 is only mildly positive. Over three months, Tech still tops the sector table at $11.9B net but its 3m imbalance is a subdued 52.3. Money keeps arriving, but with little urgency.

The sharpest reversal is in Industrials. The sector bled $1.2B this week, with a flow imbalance of 30, firmly in selling territory. Over three months it is also negative at minus $1.5B. Financials had the worst 3m sector reading at minus $9.7B, though this week it edged back to a small positive of $283M.

Energy and Health Care stayed positive across both windows. Utilities flipped: up $2.7B over three months, but down $493M this week, suggesting some profit-taking after a strong run.

Asset Class and Strategy

Equities dominated at $38.4B net on the week. Fixed income added $14.1B, with a flow imbalance of 67.7. Commodities took in $1.8B. Together, this is a broad risk-on posture with bonds providing ballast rather than refuge.

Over three months, active strategies stand out. Active ETFs pulled in $162.9B versus $224.5B for vanilla passive, a striking ratio given the size gap between the two categories. This week, active funds again ran a flow imbalance of 70 against vanilla's 63. Price-weighted strategies flipped: plus $2.6B this week after a 3m net outflow of $1.1B. Equal-weight continued to bleed, down $1.6B on the week against a modest positive over three months.

Value beat growth in 3m terms ($11.0B vs $13.9B adjusted for base), but this week value's imbalance of 73 beat growth's 60 by a wider margin. Dividends, strong over three months at $11.4B, slipped to a small net outflow this week.

The overall tone is risk-on, with money flowing into equities and selective fixed income, a rotation out of Industrials and Utilities in the short term, and continued appetite for active management.