Japan is the standout story of the week. ETFs tracking Japanese equities pulled in a net $35.5B in the past seven days. That is the single biggest geography inflow by a wide margin. The flow imbalance sits at 91.9 — deep buying territory. Over three months, Japan has also attracted $298.9B, making it the second-largest geographic destination after the U.S. Momentum here is consistent and accelerating.
China tells the opposite story. A $8.4B net outflow hit Chinese ETFs this week, with a flow imbalance of just 24.1. Over three months, China is down $37.6B. Sellers are in clear control. The contrast with Japan — both large Asian markets — is stark and telling.
The U.S. remains the dominant destination over three months, drawing $548.8B in net flows. But on a one-week basis, the pace slows to just $7.6B net. Gross flows are enormous ($57B in, $49.4B out), suggesting churn rather than conviction. Global Ex-U.S. funds are seeing near-unanimous buying pressure (flow imbalance: 93.9), hinting at a modest rotation away from pure domestic exposure.
Outside Japan and China, Emerging Markets drew $840M this week and $25.9B over three months, with flow imbalance of 81.3 — consistent, steady buying. Latin America posted a near-perfect imbalance of 98.2 this week. Developed Europe saw a small outflow of $338M, and Germany specifically bled $134.8M on the week and $3.5B over three months. Europe is not attracting fresh money.
Technology is the biggest sector bleeder this week. Information Technology ETFs lost $1.49B net, with a flow imbalance of just 46.2. Yet over three months, Tech still leads all sectors with $98.6B in net inflows. Sellers are testing a long-running winner.
Utilities and Materials both shed roughly $700M this week. Health Care lost $697M. These are defensive and cyclical names alike — a mixed signal.
On the buy side, Real Estate drew $500M this week and $2.3B over three months. Industrials added $294M, consistent with a $17.5B three-month trend. Consumer Discretionary picked up $248M this week, though its three-month reading is slightly negative — a potential short-term reversal worth watching.
Equities dominate. Equity ETFs pulled in $38.9B net this week and $1.09T over three months. Fixed Income added $7.7B on the week and $195.5B over three months — steady, not spectacular. Commodities shed $287M this week and a hefty $81.3B over three months. That is a prolonged unwind.
Active management is winning. Active ETFs attracted $12.3B this week, with a flow imbalance of 74.3. Over three months, Active gathered $129.7B. Growth strategies added $1.7B this week and $231.8B over three months — the largest strategy inflow over that period. ESG continues to struggle, losing $1.8B this week and $13.4B over three months.
Overall, the tone is risk-on but selective — investors are piling into Japan and active growth strategies while stepping back from China, Tech, and commodities.
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.
