China and Bonds Pull in Biggest ETF Flows

China ETFs led all regional inflows this week. They pulled in a net $14.7B in seven days, beating the U.S. ($14.0B net) for the top spot. That is a sharp contrast to the 3-month picture, where U.S. funds still dominate with $288B of net inflows. China's weekly imbalance score hit 77.5 out of 100, pointing to strong and consistent buying pressure rather than a two-sided tug-of-war.

Japan is a notable reversal story. Over three months it posted a net outflow of $8.0B, ranking it among the weakest regions globally. This week it flipped to a $6.7B inflow, with a flow imbalance of 87, one of the highest readings in the table. That is a meaningful short-term shift worth watching. Taiwan ($3.5B) and South Korea ($3.8B) also recorded solid weekly inflows, both with imbalance scores above 79, suggesting sustained buying rather than noise.

The one clear loser geographically was the broad Global Ex-North America basket, which shed $4.1B this week with an imbalance score of just 0.7. That is almost entirely one-directional selling, and it mirrors a $3.9B outflow over three months too. India also stayed in the red, losing $38M on the week after shedding $1.2B over three months.

Sector Rotation

Technology was the week's top sector by a wide margin, drawing $7.5B net. Over three months, IT has only attracted $15.8B, so a single week now accounts for nearly half that total. The weekly imbalance of 63.7 suggests it is not a consensus trade yet, but the direction is clear. Energy added $591M, a modest but positive read that aligns with its positive three-month trend of $2.3B.

The bigger story is where money left. Utilities, which took in $1.8B over three months, reversed hard this week with a $1.2B outflow and an imbalance score of just 12.5. That is textbook defensive money rotating back into risk assets. Financials shed $1.0B this week after already losing $9.5B over three months, making it the weakest sector by the 3-month measure. Consumer Staples also saw outflows of $721M on the week.

NEE is relevant here. NextEra Energy's reactor output is running 10.0 standard deviations below its own history as of 20 October, according to NRC data tracked by ORTEX. That is an extreme operational outlier. It arrives as Utilities ETFs face their sharpest weekly outflows of the quarter.

Asset Class and Strategy Shifts

Equities attracted $47.4B net on the week. Fixed Income was not far behind at $20.4B. Both asset classes are pulling in money simultaneously, which is less a risk-on/risk-off signal than a broad liquidity deployment. Over three months, equities lead with $521B against fixed income's $295B, so the ratio is roughly holding.

Commodities flipped negative this week, losing $1.0B after taking in $33.4B over three months. Alternatives also lost nearly $1.0B. Both carry imbalance scores in the low 40s, indicating sellers have taken control short-term.

On strategy, passive vanilla flows dominated the week at $36.2B net. The most notable divergence is active management. Active funds shed $9.2B this week, with a flow imbalance of just 35.6 suggesting sustained selling pressure. Over three months, active funds are strongly positive at $148B. That three-month trend is now running in the opposite direction to this week's action, a genuine reversal signal worth monitoring.

Growth added $3.0B and Value added $1.8B on the week, both with imbalance scores above 71. Both styles are attracting buyers. Over three months, active rotation into fundamental and growth strategies has been the dominant pattern.

The overall tone this week is cautiously risk-on. Equities and bonds are both receiving money, tech is back in favour, and the shift out of defensives like Utilities and Staples points toward investors leaning into rather than away from risk.