China Surge Leads Risk-On Week

China ETFs pulled in $23.9B in the past week. That is the single biggest geographic inflow on the board. The buying is sharp, with a flow imbalance of 82.8, meaning outflows were a small fraction of gross activity. The picture over three months tells a similar story: China has drawn $39.8B over that period, making it one of the most consistently bid geographies in the ETF universe. The momentum is not fading.

Geography Flows

Japan flipped sharply this week. $5.5B flowed in over seven days, with a flow imbalance of 87.8, one of the strongest readings in the data. Over three months, however, Japan ran a $13.4B net outflow, showing that the weekly surge is a break from a longer trend of selling. Watch whether this holds. Global ex-US funds added $1.6B in the week, part of a sustained three-month run of $28.3B in net inflows. Developed Markets ex-US funds brought in another $1.4B weekly.

South Korea was the week's main loser in geography, shedding $1.2B. Latin America lost $63M on the week and is down $369M over three months. India also reversed, posting a $37M weekly outflow after a modest three-month outflow of $954M.

The US remained positive but barely. $3.3B net came in on the week against $271.9B over three months, reflecting that gross two-way flows in the US are massive and the net result is thin.

Sector Rotation

Information Technology led all sectors with a $1.6B weekly inflow. Industrials added $494M. Consumer Discretionary gained $229M, crossing the flow imbalance threshold of 65, suggesting genuine buying pressure rather than passive drift.

The reversal story sits in Utilities and Health Care. Utilities lost $876M this week despite pulling in $1.7B over three months. Health Care shed $721M on the week, even though it received $2.5B over the three-month window. Both sectors are turning from winners into near-term losers. Financials lost $171M on the week and has shed $11.1B over three months, the largest three-month sector outflow in the data by a wide margin.

Industrials also flipped. It drew $494M this week but ran a $718M net outflow over three months. Money rotated back in after a period of selling.

Asset Class and Strategy

Equity ETFs took in $43.6B in the week. Fixed Income added $19.9B. Both asset classes have been strong over three months too: $517.9B into equities, $300.3B into bonds. The two are running in tandem, which points to broad asset accumulation rather than a classic risk-on flight from bonds.

Commodities reversed sharply. They lost $1.9B this week despite collecting $32.9B over three months. That is a meaningful weekly step-back in a category that had been a consistent recipient of flows.

On strategy, Growth received $4.2B and was the standout weekly style winner. Value shed $1.7B in the same period. Over three months, Value had taken in $8.8B while Growth drew $17.4B. Growth has now extended its lead. Active strategies continued to attract money: $3.2B on the week, $160.1B over three months. The active-over-passive theme remains one of the steadiest signals in the dataset.

The overall tone is risk-on. Equity inflows dominate, growth beats value, and China leads geographic flows with conviction.