Global ETF flows this week tell a clear story. Investors pulled money from tech and piled into energy, active funds, and foreign developed markets. The biggest single-week shift: Information Technology saw a $6.8B net outflow, even as it remains the top sector by three-month inflows at $90.4B.
The US dominated weekly inflows at $8.8B net. But the more striking move came from Japan. Japanese-focused ETFs pulled in $8.5B this week, with a flow imbalance of 79 — well into strong buying territory. Over three months, Japan is second only to the US with $302.8B in net inflows, confirming this is a sustained trend, not a blip.
China remains the clearest pain point. It posted a $4.4B net outflow this week, with a flow imbalance of just 20 — deep selling pressure. Over three months, the outflow swells to $37.8B. Sellers are consistent.
Developed Europe slipped into the red this week at -$613M, a reversal worth noting. Over three months, Europe managed only $1.8B in net inflows. That thin cushion is now cracking. Germany was particularly weak — -$291M this week and -$4.1B over three months, with a flow imbalance of just 11. Hong Kong shed -$954M this week.
The rotation signal is sharp. Tech had in net inflows over three months — the biggest sector by far. But this week, it haemorrhaged . Sentiment has flipped fast.
Energy stepped up as the week's top sector, drawing $1.8B in net inflows. Its three-month total also holds firm at $11.9B. Financials brought in $840M this week. Industrials added $518M.
Health Care and Materials are losing on both timeframes. Health Care dropped $1.0B this week and $6.0B over three months. Materials shed $1.8B this week and $7.4B over three months. Consumer Discretionary added another $667M outflow to a weak three-month tally of -$1.8B.
Equities remain the dominant destination. This week's net equity ETF inflow was $20.0B. Fixed income added $12.5B — both classes drawing fresh money simultaneously. That is a risk-on tone tempered by caution.
One major divergence on asset class: commodities flipped. They shed $77.9B over three months but pulled in a small $482M this week. Early signs of a floor, or just noise.
On strategy, active funds are the standout. They topped all strategies this week with $10.4B in net inflows and a flow imbalance of 76. Over three months, active still shows strong flows at $125.7B. Momentum strategies added $739M this week. Growth funds — strong over three months at $325.9B — flipped to -$689M this week, a notable short-term reversal. Dividends also turned negative at -$561M.
Overall, the tone is cautiously risk-on. Money is moving but rotating fast — away from tech, growth, and China, and toward active management, energy, Japan, and fixed income.
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.
