Equity ETFs pulled in $28.5B in a single week. That number alone tells the story. Risk appetite is firmly on. Money is flowing into stocks, active strategies, and energy — while tech and China face heavy selling pressure.
The US was the week's top destination, attracting $15.0B in net inflows. Global ETFs added $7.2B. Japan drew $6.2B — its flow imbalance hit 77, signalling strong buying pressure with limited selling.
China was the biggest loser. Investors pulled a net $5.9B out over the week. South Korea shed $2.8B. Hong Kong dropped $905M. All three had flow imbalance readings below 35, indicating sellers are firmly in control.
Over three months, China's pain is deeper still — $43.3B in net outflows versus Japan's $302B in net inflows. That divergence is stark. Japan remains the dominant non-US destination by a wide margin on both timeframes.
Energy led all sectors this week with $2.5B in net inflows. Real Estate added $518M. Both are defensive-leaning plays, suggesting some caution beneath the surface.
Information Technology bled $1.4B in a week alone. That is a sharp reversal. Over three months, Tech had attracted $90.9B in net inflows — the single largest sector flow by far. The weekly outflow marks a meaningful short-term shift away from the year's biggest winner.
Health Care lost $838M this week. Consumer Discretionary shed $1.0B. Financials dropped $470M. Industrials were flat. The overall picture is a rotation out of growth-sensitive sectors and into energy and real estate in the near term.
Bonds attracted $16.2B this week, second only to equities. That is not a small number. Fixed income flow imbalance stood at 68, consistent with sustained buying pressure rather than a one-off spike.
Over three months, commodities tell a very different story. They posted $77.1B in net outflows — the only asset class in the red. Yet this week, commodities attracted $1.8B. A potential floor is forming, though it is too early to call a trend reversal.
Active strategies led on the strategy side with $16.9B in weekly inflows and a flow imbalance of 83. That is the highest of any strategy group. Vanilla passive funds added $9.8B, confirming broad market participation. ESG turned slightly negative this week, reversing a $13.0B outflow trend seen over three months.
Growth strategies dominate the three-month picture with $326.8B flowing in — but just $56M this week, near flat. Momentum and fundamental strategies picked up the slack in the near term.
Overall, the tone is cautiously risk-on. Investors are buying equities and bonds together, rotating out of tech into energy, and favouring active management over passive indexing in the short run.
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.
