Money Flows Into Japan and China as Tech Faces Selling

Active managers captured $15.8B in fresh ETF money this week. That is the clearest single signal from the latest fund flow data: passive is still dominant, but active is closing the gap fast.

Geography: Asia Surges, India Bleeds

Japan was the week's most striking geographic story. ETFs tracking Japanese equities pulled in $6.9B over the past seven days, with a flow imbalance of 91.7. That means almost all of the money moving was going in, not out. Yet zoom out to three months and Japan shows a net outflow of $15.9B, making this week a sharp reversal of a persistent trend.

China followed close behind at $11B in net inflows for the week, with a flow imbalance of 70.7. Over three months, China has attracted $35.7B. Unlike Japan, this week's buying continues an established trend rather than reversing one.

The U.S. led in raw size at $13.1B net for the week and $280B over three months. Taiwan added $2.4B this week, consistent with its solid $14.4B three-month trend.

India was one of the few outright losers. ETFs tracking Indian equities saw a net outflow this week, with a flow imbalance of just 23.9. The three-month picture is equally weak at minus $783M. That weakness aligns with a sharp deterioration in real-economy data: new car registrations in India fell to 85,038 in October 2026, the smallest October on record since 2017, according to India registrations data. Goods-vehicle registrations hit a comparable record low at 23,027 units. The ETF flows and the economic data are pointing in the same direction.

Brazil also saw outflows of $904M this week, with a flow imbalance of 31.2, reversing the positive $4.9B trend seen over three months.

Sector Rotation: Tech Sold, Financials Bought

Information Technology was the week's biggest loser by far. Sector ETFs bled $1.9B in net outflows. That is a hard turn from the three-month trend, where Tech attracted a net $2.7B. The weekly imbalance of 44.9 points to active selling pressure.

Financials filled the gap, drawing $1.3B in net inflows this week. The sector's imbalance of 63.9 shows genuine buying interest. That is a notable contrast to the three-month picture, where Financials posted the largest net outflow of any sector at minus $9.9B. Money is coming back.

Health Care attracted $558M this week, extending its solid three-month gain of $3.1B.

Consumer Staples was the second-worst sector this week, losing $471M. Utilities shed $164M. Both are typically defensive plays, which suggests investors are not yet rotating into safety.

Asset Class and Strategy: Bonds Accelerate, Active Wins

Equity ETFs led with $48.7B in net weekly inflows. Fixed income added $16.2B, the strongest proportional gain relative to its three-month pace. Bond buying is accelerating.

On strategy, the clearest move is the ongoing strength of active management. Active ETFs pulled in $15.8B this week against vanilla passive at $20.3B. Active's flow imbalance of 75.1 is noticeably higher than vanilla's 60.7. Over three months, active has gathered $158.9B versus vanilla's $191.5B. The gap is narrowing.

Value strategies saw a sharp $2.1B outflow this week, reversing a $8.4B gain over three months. Growth, by contrast, attracted $1.9B. Dividend strategies held steady at nearly $2B, consistent with their three-month trend.

The overall tone is cautiously risk-on. Equities dominate inflows. Tech is being trimmed. Japan is drawing fresh attention after months of outflows. And active managers are taking more of the pie.