Money Flows East as Tech Bleeds

The dominant story this week is a sharp split between geographies. The US still leads in raw dollar terms, pulling in $13.3B net over the past week. But the conviction sits elsewhere. China ETFs attracted $11.0B with a flow imbalance of 70.7, meaning buyers heavily outnumbered sellers. Japan delivered $6.9B with an imbalance of 91.7, the most one-sided buying pressure in the geography table.

These are not three-month trends carried forward. Over the past three months, Japan was actually a $15.9B net outflow. This week's $6.9B surge is a clean reversal. Investors who were pulling money from Japanese markets are now piling back in.

Geography: Asia Dominates, Brazil Flips

China and Japan together took in nearly $18B net this week. Taiwan added $2.4B, and Developed Markets Ex-US added $1.4B. The Global Ex-North America basket had a near-perfect flow imbalance of 99.6, with almost no selling pressure. Institutional money is moving away from pure US exposure.

Brazil is the clearest reversal in the other direction. Over three months it registered $4.9B of net inflow. This week it flipped to a $904M net outflow, with a flow imbalance of 31.2. Selling pressure arrived quickly. India and Latin America broadly also remain in outflow over the week.

Israel's imbalance sits at just 24.6 this week, with $286M of net outflow, consistent with the three-month trend.

Sector Rotation: Tech Loses Top Spot

The sharpest sector story is Information Technology. Over three months, it had $2.7B of net inflow. This week it turned into the single biggest sector outflow, shedding $1.8B net. Gross outflows hit $10.2B, against $8.4B of inflows.

Financials did the opposite. Three months ago it was the biggest sector outflow at $9.9B negative. This week it led all sector inflows at $1.3B net. Health Care added $619M. Communication Services pulled in $592M with an imbalance of 78.6.

Consumer Staples and Materials both remained in outflow on both timeframes, offering little sign of a defensive rotation. Utilities also bled $164M this week, reversing a positive three-month trend of $1.3B.

Asset Class and Strategy: Bonds Hold Firm

Equities remain the primary destination, drawing $48.9B net this week with a flow imbalance of 63.7. Fixed Income is not being abandoned. It attracted $16.2B net, and its imbalance of 65.3 actually exceeded equities. Over three months, fixed income has taken in $293B, more than half the equity total on a relative basis. Commodities pulled in $849M this week, consistent with the three-month picture.

On strategy, active management is pulling well ahead. Active ETFs drew $15.7B this week, imbalance of 75.0, and $158.8B over three months. Vanilla passive still leads in absolute size with $20.6B this week, but the active share of flows is growing. Value strategies reversed three months of modest inflows, turning to a $2.1B outflow this week. Dividend strategies attracted $2.0B with an imbalance of 81.0.

The overall tone is risk-on but selective. Equities and bonds are both receiving money. The rotation is away from US tech dominance and towards Asian markets, financials, and actively managed funds.