Money Flows East as Active Funds Bleed

China ETFs pulled in $19.9B in a single week. That is the standout number across all ETF flows right now, and it dwarfs every other geography by a wide margin.

Geography: Asia Dominates, Emerging Markets Split

China's $19.9B weekly inflow carries a flow imbalance score of 81, signalling strong buying pressure with very little selling offsetting the move. Taiwan added $1.7B and Japan $4.9B. Over the three-month window, however, Japan tells a different story: net outflows of $7.9B on 3m, a sharp reversal from its strong showing this week. That divergence is worth watching. The 1w surge into Japan may be tactical rather than a fresh conviction trade.

Emerging Markets as a whole bled $2.1B this week, even as China (technically an EM member) led all inflows. Strip China out and the broader EM basket is under clear selling pressure, with a flow imbalance of just 21. The U.S. attracted $4.0B on the week, modest relative to its $41T AUM base. Over 3m the U.S. remains the anchor, having absorbed $289B net.

Global Ex-North America funds saw $4.1B of outflows this week, one of the sharpest weekly reversals in the geography table. Over 3m the same bucket was also negative, at $3.9B out. Consistent selling on both time frames points to a deliberate reduction of exposure to non-US developed and EM blends.

Sector Rotation: Tech Leads, Utilities Collapse

Tech pulled $5.3B this week, the biggest sectoral inflow by far. The flow imbalance sits at 62, indicating positive but not extreme buying pressure. Over 3m, Tech remains the top net receiver at $16.0B, though its imbalance on that longer view is only 53, suggesting the weekly acceleration is notable.

The biggest reversal belongs to Industrials. Over 3m, Industrials was a net loser at $1.1B out. This week it flipped to $802M of inflows. Sector ETF investors appear to be rotating back in after months of selling.

Utilities suffered the sharpest single-week sector outflow at $923M out, with a flow imbalance of just 12. That is almost pure selling. Over the prior 3m, Utilities had attracted $1.8B in net inflows, making this week a clear trend break. Financials also shed $937M this week against 3m outflows of $9.4B, a sector that cannot find sustained buying.

Asset Class and Strategy: Bonds Hold, Active Funds Retreat

Equities drew $35.4B this week. Fixed Income added $17.8B, a healthy second place with a flow imbalance of 71. Commodities lost $1.7B on the week, a reversal from 3m net inflows of $33.1B. That is the clearest asset-class trend break in the data.

The strategy picture is dominated by one number: active funds lost $10.3B this week, with a flow imbalance of just 33. Over the prior 3m, active strategies had gained $148B net. The single-week reversal is large. Vanilla passive funds took in $30.3B this week and remain the dominant vehicle at $228B over 3m. Growth strategies attracted $4.1B this week and $17.9B over 3m, consistent with the continued bid for tech.

The overall tone is risk-on in equities, led by Asia and technology, with a notable rotation out of active management and a sharp one-week reversal in commodities and utilities.