Financials led European ETF inflows and fell 4.05%, the week's worst sector return

Financials took in more money than any other European equity sector over the five sessions to October 2 and finished the week as the group's weakest performer: the flows-and-performance split this publication has tracked since August. Trackinsight's week-40 recap puts the sector's inflows at €309.8 million, more than four times the €65.1 million that went to second-ranked materials. The sector's 4.05% fall across those five days was the worst return of the week, and the €6.04 billion that went into equity funds overall was close to double the €3.31 billion gathered by fixed income.

The prior week made the reversal even more abrupt: Financials shed €1.03 billion in the week to September 25 and took in €309.8 million the week after, roughly €1.3 billion of movement in seven days. Information Technology led the performance table in both weeks, at 4.57% and 3.20%. A week earlier the two tables had agreed, technology taking the performance crown and €275.7 million of new money. Week 40 broke that alignment: technology does not appear among the four sectors Trackinsight names as the week's biggest gatherers, leaving its haul below Energy's €54.8 million. Second-ranked materials at €65.1 million also fell 2.86%, while the week's outflows were small, industrials giving back €67.3 million and real estate €61.5 million.

The geographic bid kept the shape this column described in August: developed-market and US exposure drew the largest allocations, at €1.80 billion and €1.38 billion, with emerging markets at €809.2 million, Europe at €710.8 million and world exposures at €568.3 million. Selling was small by comparison, led by €65.0 million out of South Korea and €62.0 million out of Latin America, while Brazil was the week's standout gainer at 4.92%. Hungary fell 5.11% and Eastern Europe dropped 4.27%, with South Africa, Belgium, Austria, Spain and Turkey each down more than 3%.

Cybersecurity swept both tables, gathering €128.5 million as the only individual theme above €100 million and gaining 5.11% to top the thematic performance list, while cloud computing rose 3.80%, Asia defense 3.47%, electrification 3.12% and robotics and automation 3.00%. Climate Action's €56.1 million was the largest thematic outflow, while blockchain's 3.44% decline was the weakest theme return.

Inside the bond total, government investment-grade funds absorbed €1.60 billion, close to half the week's fixed-income haul and the largest single allocation of the week, while commodities added €488.9 million. Week 41 will show whether financials keep the top of the sector flow table while returns stay negative.