US and Tech Dominate Global ETF Flows

US-focused ETFs pulled in a net $27.3B last week alone. That makes America the clear leader in short-term geography flows. The broader trend is consistent. Over three months, US ETFs have attracted $689.6B net — more than double the next closest region.

The week's sharpest surprise came from Japan. It shed $14.4B in net outflows over the past week, with a flow imbalance of just 34 — firmly in selling territory. This is a dramatic reversal. Over three months, Japan posted $282.9B in net inflows, making it the second most popular geography globally. Money that flocked to Japan earlier this year is now rotating out fast.

Geography Flows

The US and Global categories are the clear short-term winners. Global ETFs added $13.0B net last week, with a strong flow imbalance score of 69.9. Hong Kong posted a small but clean $1.7B inflow with a flow imbalance of 80.2 — almost all buying pressure. China, however, bled $4.9B last week. Over three months, China is down $49.4B net, cementing its status as the most avoided major market.

The UK and Switzerland both saw modest outflows this week, with flow imbalances of 27.6 and 23.6 respectively. Germany also shed $134M on the week, continuing a three-month trend of $4.1B in net outflows.

Sector Rotation

Technology is the standout sector. Information Technology pulled $9.6B net last week. That is the biggest weekly sector inflow by a wide margin. The 3-month picture confirms this is a sustained trend. Tech has attracted $98.3B over 90 days.

The sharpest week-on-week reversal is in Energy and Industrials. Both sectors bled money this week — Energy lost $885M net, Industrials $824M. Yet over three months, both had been strong destinations. Energy attracted $10.3B and Industrials $12.2B over 90 days. That divergence signals a short-term pause in the commodity and capex trade.

Materials also flipped. It took in $714M net this week but lost $5.4B over three months. The near-term buying in Materials could reflect a tactical bounce rather than a structural shift.

Financials stayed in the red both short and long term — down $101M last week and $10.3B over 90 days.

Asset Class and Strategy

Equities dominated every timeframe. Last week saw $31.6B flow into equity ETFs. Fixed Income added $17.5B, its flow imbalance sitting at a strong 78.1. Commodities attracted $1.9B last week — a notable contrast to their three-month picture, which showed a $68.9B net outflow. That is a significant reversal worth watching.

On strategy, Active ETFs led last week with $15.6B net inflows and a flow imbalance of 72.5. Growth strategies also stood out with $3.8B on the week. ESG continued to struggle, losing $1.7B last week and $24.9B over three months. Vanilla passive strategies bled $3.9B last week, despite dominating three-month totals with $453.6B net — suggesting active rotation at the margin.

Overall, the risk-on tone is intact. Equities and fixed income are both in demand, but the Japan reversal and fading Energy/Industrials momentum hint at a more selective, US-and-Tech-centric positioning entering the back half of May.