Global ETF flows turned decisively risk-on this week. Equity ETFs pulled in $28.5B in net new money over seven days. That dwarfs every other asset class combined.
The US attracted $15B in net inflows this week. That is the largest single geography by a wide margin. Japan added $6.2B, with a flow imbalance of 77 — a strong buying signal. Global and Developed Markets ex-US each added over $1B.
China is the standout loser. It bled $5.9B in net outflows this week alone. Flow imbalance sat at just 27, signalling heavy selling pressure. Over three months, China's cumulative outflow has reached $43.3B. That is a sustained institutional retreat, not a one-week blip.
South Korea also saw $2.8B exit this week. Over three months it had been a net receiver of $11.4B, so this week marks a sharp reversal. The same pivot applies to Hong Kong, which saw $905M exit on a flow imbalance of just 18.
One clear trend: money is rotating out of Asian markets and back toward the US and developed-world proxies. Global Ex-US ETFs posted a flow imbalance of 97 this week — near-total buying pressure.
Energy was the only sector with meaningful net inflows this week, pulling in $2.5B. That continues a three-month trend where energy has gathered $13.1B.
Information Technology saw $1.4B in net outflows this week. That is a notable reversal. Over three months, tech has been the dominant sector, attracting $90.9B. Investors appear to be trimming after a strong run.
Health Care lost $838M this week. Consumer Discretionary shed $1B, with a flow imbalance of just 23 — the weakest buying pressure of any sector. Real Estate bucked the trend, adding $518M.
Industrials drew $15.5B over three months but was essentially flat this week at $6.5M. The three-month momentum has stalled.
Equities took in $28.5B this week. Fixed Income added $16.2B — a meaningful number that shows investors are not abandoning bonds. Over three months, fixed income has gathered $193B, running at roughly one-sixth of equity inflows.
Commodities reversed sharply. They absorbed $1.8B this week but lost $77.1B over three months. The short-term uptick may reflect energy ETF buying rather than a broader commodities revival.
Active strategies dominated the strategy picture. They pulled in $16.9B this week on a flow imbalance of 83 — the strongest reading of any strategy group. Over three months, Growth ETFs stand out with $326.8B in net inflows and an imbalance of 93. ESG continued to bleed, losing $84.9M this week and $13B over three months.
Overall, the tone is cautiously risk-on. Investors are buying US equities and bonds simultaneously. China remains the clear pain trade of the quarter.
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.
