Money Follows Japan, Dumps Tech

China drew $11B in net ETF inflows over the past week. But Japan delivered the bigger reversal. Japanese-focused ETFs pulled in $6.9B this week. Over three months, Japan had been a heavy net seller at -$15.9B. That swing from deep outflow to strong inflow is the clearest trend shift in the geographic data.

The US market kept its position as the largest single destination. Net inflows of $13.1B came in over the week. Over three months the cumulative total reached $280B. The flow imbalance sits at 57, which signals mild but consistent buying pressure rather than conviction momentum.

Geography Flows

China recorded a flow imbalance of 71 for the week, one of the strongest readings across all regions. Japan's imbalance hit 92, near the top of the range. Taiwan added $2.4B this week and remains in positive territory over three months at $14.4B.

Brazil was the sharpest outflow story. It shed $904M this week. Over three months it had attracted $4.9B, meaning this week's selling cuts against a longer trend of inflows. India also continued its drip of small net outflows: -$32M this week and -$783M over three months. ORTEX alt data shows Indian two-wheeler registrations fell to 407,743 in October 2026, the smallest October on record since 2017 and down 87% on last year. M&M, which reports on 5 November, uses Indian registrations as a leading revenue indicator. The data so far runs 82% below the same quarter last year.

Europe's headline number stays modest. Developed Europe brought in $117M this week against $7B over three months. Germany was a net seller both timeframes.

Sector Rotation

Technology suffered the biggest single-sector outflow of the week. Net selling in Information Technology ETFs reached $1.9B over seven days. Over three months, the same sector had attracted $2.7B. The reversal is sharp and worth watching.

Financials went the other way. $1.3B flowed in this week. Over three months Financials was the worst performer at -$9.9B of net outflows, so this week's buying represents a meaningful reversal.

Health Care held up on both timeframes: +$558M for the week and +$3.1B over three months. Communication Services added $593M this week, consistent with the three-month positive trend.

Consumer Staples and Utilities both bled money this week. Staples lost $471M; Utilities dropped $163M. Industrials were flat at $6M, though they showed a small net outflow over three months. FLUT carries a 72% probability of MSCI World deletion per the ORTEX Index Rebalance Radar, with $741M of potential forced selling if confirmed at the 11 November announcement.

Asset Class and Strategy

Equities dominated at the asset class level. $48.7B in net equity ETF inflows arrived this week. Fixed income added $16.2B. Commodities took in $849M. The combined picture is risk-on, with equities and bonds both attracting money simultaneously.

Over three months, the proportions are similar but larger in scale. Equity net flows totalled $507B. Fixed income brought in $293B. That sustained dual inflow into both stocks and bonds is a feature of the three-month trend, not just a one-week anomaly.

On strategy, active funds collected $15.8B this week. That compares with $20.3B for passive vanilla. The 1w active-to-vanilla ratio is tighter than the three-month picture, where active pulled $158.9B against vanilla's $191.5B. Value strategies saw $2.1B of outflows this week, reversing their three-month positive of $8.4B. Dividend strategies remained in demand at $2B this week and $9.2B over three months.

The overall tone is cautiously risk-on. Equities and bonds both attract money. Japan reversal and the Tech sector selloff are the two most notable divergences from the three-month trend worth monitoring into the MSCI November review announcement on 11 November.