Money Flows to China and US, Bonds Hold Firm

The week's most striking move is in China. ETFs tracking Chinese stocks pulled in $29.6B in net inflows over the past week, the largest absolute figure of any geography. Flow imbalance hit 84.2, a strong buying signal. Over three months, China has drawn $66.7B, running well ahead of any other single country. The momentum is consistent, not a sudden reversal.

The US was a close second over the week at $28.1B net inflow, with a flow imbalance of 68.6. Over three months, the US leads all geographies by a wide margin at $282.2B. That scale reflects the sheer depth of US-listed ETF assets, but the direction is unambiguous: domestic allocators and global buyers are both still adding.

Geography Flows

Taiwan attracted $5.8B in net inflows this week, with a flow imbalance of 94. That is one of the highest conviction readings in the entire dataset. Over three months, Taiwan has taken in $20B. The pattern is consistent and shows no sign of fading.

Japan flipped the other way. Over three months it posted a $22.1B net outflow, the largest redemption of any geography across that horizon. This week saw a modest $1.4B net inflow, but the quarterly trend puts Japan firmly in the retreat camp.

South Korea saw $1.8B leave this week. Broad Emerging Markets lost $1.7B over the same period, with a flow imbalance of only 28.6, pointing to light but persistent selling pressure.

Sector Rotation

Information Technology was the week's top sector by inflow, pulling in $2.7B net. That looks solid in isolation. Over three months, though, IT's net is just $11.1B against $129B of gross inflows, implying heavy two-way traffic and a flow imbalance of only 52.3. Investors are cycling in and out rather than making a clean directional bet.

Industrials reversed sharply. Over three months, Industrials had been a net recipient of capital at a loss of only $2.9B. This week alone it shed $852M net, with a flow imbalance dropping to 29.6. That is a clear turn, with outflows now dominating.

Health Care gained $503M this week and $3.0B over three months. The trend is steady rather than explosive. Medicare Advantage enrolment reached 36.2 million beneficiaries in July 2026, a record for any July since 2013, with penetration crossing 51% according to ORTEX alt data. That structural growth in the insured population continues to frame the sector's investment case.

Financials attracted $592M this week. Over three months the picture is different: a $9.5B net outflow, the heaviest three-month drawdown of any sector. This week's buying may be opportunistic rather than trend-driven.

Asset Class and Strategy

Equities dominate both timeframes. This week saw $64.6B net into equity ETFs. Over three months the figure is $532.6B. Bond ETFs attracted $2.8B this week and $282.8B over three months. The 3m ratio of equity to fixed income inflows is roughly 1.9 to 1, a risk-on tilt but with meaningful fixed income demand running underneath.

Commodities flipped from positive over three months ($32.2B) to a small net outflow of $205M this week. That is a mild cooling rather than a rout, with flow imbalance still near 48.

On strategy, vanilla passive funds dominated this week at $51.4B. Growth strategies attracted $3.6B. Dividends lost $1.4B this week despite being a consistent receiver over three months at $9.5B. Active strategies drew just $153B over three months but are almost perfectly balanced this week, net negative by $74M against $10B of gross flows on each side.

The overall tone is risk-on. Equities lead, China and Taiwan are the clearest regional conviction trades, and bonds are accumulating steadily in the background rather than being sold.