The past week saw a clear split. Investors pushed cash into US and Japanese equities while pulling hard from Technology. The rotation away from growth and into energy and defensive sectors marks a notable shift from the three-month trend.
The US attracted the largest weekly inflow across all regions at $10.6B net. Japan was the standout international story, pulling in $6.7B with a flow imbalance of 79 — strong buying pressure. Global-ex US funds added another $988M.
China and South Korea sat on the wrong side of the ledger. China shed $1.6B on the week, with a flow imbalance of just 34 — clear selling pressure. South Korea lost $1.1B. Both regions have been consistent underperformers over three months too, with China down $39.7B and South Korea losing $14.4B over that period despite nominal gains.
Over three months, the US ($665.9B) and Japan ($302.9B) dominate total inflows. The gap between these two and every other region is vast. Europe as a whole remains broadly flat at the three-month level, with Germany persistently bleeding outflows.
Technology was the week's biggest loser by a wide margin. IT ETFs lost $6.4B net, with outflows of $13.8B swamping inflows. The flow imbalance of 35 signals strong selling pressure.
That contrasts sharply with the three-month picture, where Technology led all sectors with $90.7B in net inflows. The reversal this week is significant.
Energy was the top sector gainer, pulling in $2.6B with a flow imbalance of 90. Industrials added $565M. Financials and Real Estate also attracted modest inflows.
Health Care and Consumer Discretionary both posted meaningful outflows on the week — down $924M and $877M respectively. Materials dropped $1.5B, the second-largest sector outflow.
Both equities and fixed income attracted fresh money this week. Equities led with $20.1B net, while bonds added $12.9B. Commodities gathered $1.4B, a sharp reversal from the three-month trend where commodities saw $77.5B in net outflows.
Currency ETFs drew $2B on the week, posting a flow imbalance of 88 — the highest of any asset class. That suggests investors are actively hedging FX risk.
On strategy, Active funds topped the weekly table with $12B net and an imbalance of 82. Vanilla passive funds added $9.6B. The divergence from the three-month data is notable: Growth strategies raked in $325.8B over three months but turned negative this week at minus $1.1B. Dividend funds also reversed — positive $14.8B over three months, negative $728M this week. ESG remained under steady pressure on both timeframes.
Overall, the week's tone leans cautiously risk-on. Investors are buying equities and bonds together, rotating out of momentum-driven tech and growth into energy, industrials, and active strategies. The move signals selective re-positioning rather than broad risk appetite.
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.
