US equities dominate ETF inflows this week. $15.7B net flowed into US-focused funds in just five days. But beneath that headline, a sharp sector rotation is underway — and the data tells a clear story about where institutional confidence is building and where it is collapsing.
The US leads all regions with $15.7B in net inflows over the past week. Japan is a strong second at $6.7B, with a flow imbalance of 78 — well into buying pressure territory. Global funds added $5.3B. These three dominate every other region combined.
The losers are stark. China shed $2.9B in a single week, with a flow imbalance of just 30 — heavy selling pressure. South Korea lost $2.7B. Hong Kong dropped $821M with the lowest flow imbalance of any major region at just 15. Over three months, China's outflows total $41B, making it the clearest sustained exit in any geography.
One notable shift: South Korea looks different over 3 months. It posted $12.8B in net inflows over 3 months but flipped to a $2.7B outflow this week. That is a sharp reversal. Developed Europe also turned negative this week after sitting flat over the longer period.
Tech is the week's biggest loser. Information Technology ETFs saw $6.5B in net outflows — the largest negative flow of any sector. Flow imbalance hit 38, firmly in selling territory. Over three months, Tech had attracted $90.6B, making this week's reversal even more striking. Institutional money is taking profits.
Energy is the week's top sector winner at $2.6B in net inflows. Flow imbalance reached 87 — strong buying. Industrials added $723M and Financials $449M. Real Estate attracted $442M, its first meaningful inflows in weeks.
Health Care and Materials both bled heavily. Healthcare lost $899M this week. Materials dropped $1.4B. Both have been consistent underperformers over three months too, with $6.4B and $7.3B in outflows respectively.
All major asset classes drew inflows this week. Equities led with $20.1B net. Fixed Income pulled in $12.9B — suggesting a split appetite rather than a pure risk-on bet. Commodities attracted $1.4B this week. That reverses a painful three-month picture: Commodities bled $77.5B over 3 months, the only asset class in sustained net outflow.
Active strategies are the week's standout. Active funds drew $15B in net inflows, with a flow imbalance of 83. That crushes Vanilla passive flows on a relative basis. Over three months, Growth strategies dominated with $326B in inflows and a flow imbalance of 93. This week, Growth reversed to a $875M outflow — matching the Tech selloff closely. ESG continues to bleed, losing $286M this week and $12.4B over three months.
The overall tone this week is cautious rotation. Money is moving — out of Tech and China, into Energy and Japan — but Fixed Income inflows alongside equities suggest investors are not fully committed to one direction.
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.
