Money Flows East as Tech Bleeds

China attracted the most net new money in the past week, pulling in $11.1B of ETF inflows. Japan was close behind at $6.5B. The U.S. added $10.0B in net terms, but its flow imbalance score of 56.6 signals a market split between buyers and sellers rather than broad conviction.

The week-versus-three-month comparison tells the sharpest story. Over three months, Japan was the biggest drain outside the U.S., bleeding $15.3B. This week it flipped sharply positive. That reversal is one of the clearest trend shifts in the data. China, by contrast, held its ground: it ranked second over three months at $34.7B and topped the weekly table again, suggesting the appetite for Chinese equities is not fading.

Germany picked up just $17M net this week. That muted reading lands on the same day German unemployment hit 4.1% in September 2026, its worst September reading in ten years according to ORTEX Alt Data. Italy saw unemployment rise to 6.3%, a two-year September high. European macro weakness does not appear to be driving large ETF exits yet, but the flow imbalance for Developed Europe sat at only 58.6 this week, well below the strong-buying threshold of 65.

Geography Flows

Asia dominates the inflow column. Taiwan added $2.4B and South Korea $1.8B on the week, building on $16.4B and $7.0B over three months respectively. The appetite for Asian ex-Japan exposure is consistent. Brazil stands out as the sole significant outflow market, losing $871M this week. Over three months Brazil was actually a gainer at $5.0B, so this week's reversal warrants watching. Israel continued its three-month outflow run, shedding another $286M this week.

Sector Rotation

Technology was the biggest sector loser of the week. It posted a net outflow of $1.2B despite $7.8B of gross buying. The imbalance score of 46.3 confirms sellers dominated. Over three months, however, Tech was a net gainer at $3.1B, meaning this week's move is a short-term reversal rather than a trend.

Financials took the opposite path. The sector topped the weekly table at $1.1B inflow. Over three months, Financials had the worst sectoral outflow in the data at $10.1B. Buyers appear to be returning. Health Care added $719M this week, consistent with its $3.3B quarterly gain.

Consumer Staples shed $443M this week and $996M over three months. Utilities also bled both over one week and three months. Defensive sectors are out of favour.

Industrials offered a mixed picture. The sector eked out just $104M this week. Over three months it was down $778M, meaning the weekly turn is small but directionally constructive.

Asset Class and Strategy

Equities attracted $44.6B in net flows this week. Fixed income added $12.4B. Both asset classes show balanced buying pressure above 63, consistent with a broadly risk-on tone. Commodities took in $354M on the week against $32.9B over three months, suggesting commodity enthusiasm cooled this week.

Active management continued its strong run. Active ETFs pulled in $14.6B this week and $159.3B over three months, running at about 82% of the pace of passive vanilla strategies despite a far smaller asset base. That gap in flow efficiency has been a consistent pattern. Value strategies reversed sharply, posting an outflow of $2.5B this week after three months of net $8.4B inflows. Growth strategies held positive at $1.5B.

ESG was nearly flat on the week at minus $11M. Over three months it gathered $9.6B, suggesting the recent pause is noise rather than a structural exit.

The overall tone this week is risk-on but selective. Asia leads geography, active management leads strategy, and the money rotating out of Tech and into Financials is the most notable sector signal.