Bonds Grab $5.8B Weekly

Fixed income ETFs pulled $5.8B last week. The defensive shift came as equity funds bled $3.9B. Asset allocation strategies grabbed $660M showing portfolio rebalancing. Commodities absorbed $11.3B in outflows as volatile energy markets triggered exits.

Geography Flows

Japan dominated with $19.7B in fresh capital. The flow imbalance hit 70% showing strong buying pressure. Taiwan added $3.6B with 91% flow imbalance signaling near-total bullish conviction. The U.S. hemorrhaged $27.8B reversing three-month momentum that brought $125B in inflows.

Emerging Markets Ex-China caught $1B with 99% flow imbalance. South Korea grabbed $929M while Hong Kong added $1.1B. Canada posted $1.3B inflows with 76% flow imbalance. China shed $1.4B extending quarterly outflows to $98.2B showing sustained capital flight.

Developed Europe lost $2.1B last week contrasting with $21.3B in three-month gains. The reversal signals rotation away from European equities despite earlier strength.

Sector Rotation

Energy led with $1.1B inflows and 61% flow imbalance. Materials bled $1.8B with only 27% flow imbalance showing heavy selling pressure. Information Technology lost $2.4B extending three-month outflows to $6B despite sector dominance earlier this year.

Industrials shed $512M last week yet held $23.9B in three-month inflows demonstrating the biggest quarterly gain. Energy grabbed $18.1B over three months showing sustained commodity rotation. Consumer Staples dropped $614M with just 21% flow imbalance.

Healthcare lost $232M weekly but held near-flat three-month flows. Utilities grabbed $58M showing modest defensive positioning. Real Estate added $50M.

Asset Class & Strategy

Vanilla strategies dominated with $26.4B weekly inflows and $266.7B over three months. Active funds grabbed $8B last week with 76% flow imbalance. Fundamental strategies bled $20.7B showing rejection of bottom-up stock picking.

Multi-factor funds lost $5.4B last week yet gained $7.3B over three months. Dividends shed $4.3B with only 26% flow imbalance. Value lost $2.9B weekly but held $8.9B quarterly gains. Growth dropped $2.7B.

ESG funds lost $581M reversing modest three-month gains. Buy-write strategies grabbed $318M showing covered-call interest. Volatility hedged products added $661M with 98% flow imbalance as investors positioned for turbulence.

Risk-off positioning dominates. Bonds beat equities. Asia replaced America. Energy trumped tech.