The single biggest story this week: $104B net flowed into Information Technology ETFs. That is the largest sectoral inflow by a wide margin. It signals a sharp reversal of sentiment after months of cautious positioning.
US-focused ETFs dominated geography flows with $407B net inflows over the past week. Flow imbalance hit 90.2 — deep buying pressure territory. Japan was the only other region to register significant momentum, pulling in $33.5B with a 92.3 imbalance score.
China was the standout loser. It shed $7.6B net over the past week. That follows $50.3B in net outflows over three months — the largest geographic outflow in the 3m window. Developed Europe also turned negative on a one-week basis, posting a $755M outflow after recording $7B in net inflows over three months. That reversal is worth watching.
India flipped too. It attracted $1.7B inflows over three months but turned slightly negative this week. Mexico and North America (as a regional bucket) also saw mild net outflows over the past week.
Latin America and Emerging Markets Ex-China held positive on both timeframes, suggesting selective EM appetite remains alive.
Tech's $104B 1-week net inflow dwarfs everything else. Over three months, IT also leads at $98.8B — consistent buying across both windows.
Financials tell the opposite story. They lost $1.2B this week and $11.7B over three months. That is the worst sector on both timeframes. Health Care is also under pressure. It bled $163M this week and $5.2B over three months.
Industrials held steady. $801M net inflows this week, $18.2B over three months — consistent and broad-based. Energy is interesting: it posted $13.9B over three months but was near flat this week at just $2.7M. The three-month tailwind is fading fast.
Consumer Discretionary flipped. It posted $887M in net outflows over three months but attracted $259M this week — a small but notable trend reversal.
Equities took in $452B net this week alone. Fixed income added a solid $6.9B. Commodities lost $1.5B — continuing a brutal three-month trend of $81.8B in net outflows.
Growth ETFs led strategy flows with $220B net inflows this week and a 99.4 flow imbalance. That is near-unanimous buying. Vanilla passive strategies added $213B. Active ETFs pulled in $16.3B — continuing three-month momentum of $134B.
Low Volatility and ESG strategies both saw outflows this week. ESG has now bled $15.3B over three months. Investors are clearly not paying a premium for the label right now.
The overall tone is firmly risk-on: equities in, commodities out, growth over defensives, and the US back at the top of the geography leaderboard.
ORTEX Market Intelligence content is generated by AI from a snapshot of ORTEX's proprietary data. Content is informational only and does not constitute investment advice.
