Global capital continues to flow into risky assets in the United States.

In the past trading week, the U.S. stock market posted a strong rebound after four consecutive weeks of declines. The move was driven mainly by a string of positive economic data and expectations that tensions in the Persian Gulf would ease, which helped draw funds back into technology stocks and other cyclically oriented shares.

The technology sector’s gains helped the Nasdaq lead with a 2.2% rise versus the previous week. The S&P 500 increased 1.63%, while the Dow Jones rose 1.18%.

ETF flows turn “risk-on” in the U.S.

Net inflows into U.S. equity ETFs reversed to net inflows of $28.9 billion, after a prior week of outflows. Bond ETFs also shifted to net inflows of $11.7 billion following a net outflow the week before.

Within equities, stock ETFs continued to attract stronger net inflows of $14.3 billion, up 156% from the prior week.

International ETF flows were mixed. Net inflows into non-U.S. equity ETFs swung to $3.4 billion after a week of net outflows. Non-U.S. bond ETFs reversed to net outflows, though the shift was not meaningful.

Commodity ETFs returned to inflows of $755 million after four weeks of net outflows, supported by elevated oil prices and gold beginning to form new trading ranges after an early-March decline.

Capital flows outside the U.S. remain cautious

Overall, capital flows showed a modest “risk-on” stance both in the United States and outside it. However, there is a tendency for flows to move back to the U.S. as the U.S. dollar strengthens and U.S. equity markets rebound strongly after recent declines. At the same time, defensive sentiment persisted as bond ETFs continued to attract funds, even as investors reallocated between risk and safe-haven assets.

Asia: foreign outflows dominate, with Vietnam a partial exception

Across Asia, foreign capital continued to trend toward net outflows in most markets. Taiwan led with more than $5 billion in net outflows, followed by South Korea with nearly $3.8 billion. Foreign investors also pulled out net amounts from Indonesia (more than $174 million), Vietnam ($155 million), and other markets.

ETFs in Southeast Asia recorded net outflows for the second consecutive week, totaling $28 billion, as funds rotated back to the U.S. and away from emerging and frontier markets. Singapore led withdrawals at –$40.1 million, while Indonesia also saw outflows of $8.5 million.

Vietnam stood out as a regional bright spot, with net inflows of +$17.9 million for the fifth consecutive week. ETF fund activity appeared to be ahead of FTSE’s upgrade assessment for Vietnam’s market in its multi-level review due on April 8.

Vietnam-dedicated ETFs: mixed performance beneath the headline inflow

Despite the positive regional picture, Vietnam-dedicated ETFs individually saw outflows in many cases. The FUEVFVND fund recorded a large outflow of $14 billion, reflecting cautious domestic investor sentiment during the week. External (foreign-oriented) ETFs also saw withdrawals, though not meaningfully, including VanEck (–$1.7 million), Fubon (–$1.4 million), and DB FTSE (–$0.8 million).

Vietnam equities: foreign investors remain net sellers

In the Vietnamese stock market, foreign investors continued to sell netting (–4,091 billion VND). They sold heavily in VIC (–1,179 billion VND), VHM (–559 billion VND), and FUEVFVND (–537 billion VND).

Conversely, notable net buyers included SHS (+$371 billion VND), MSN (+326 billion VND), and IDC (+202 billion VND).