Investment Rating - The report does not explicitly provide an investment rating for the industry or specific stocks within it Core Insights - The report discusses the moderation of inflows into US offshore-listed equity ETFs, with net outflows of approximately USD 4.7 billion over the past 20 weeks, indicating a shift in investor sentiment towards Europe and emerging markets (EMs) [1][3][5] - Europe-focused offshore ETFs have seen positive net inflows in 21 out of the past 24 weeks, totaling around USD 15 billion, suggesting a growing interest in European equities [3][7] - Emerging market ETFs have recorded positive flows in 19 out of the past 23 weeks, amounting to USD 13.6 billion, coinciding with the decline in US equity ETF inflows [3][9] - Interest in EM-ex China funds has declined recently, with net outflows of USD 2.9 billion over the past 18 weeks, contrasting with the significant inflows of USD 16.8 billion from October 2022 to October 2024 [3][11] - Japan offshore-listed ETFs have seen modest net buying, but foreign investors may be favoring direct stock investments in Japan, as evidenced by 13 consecutive weeks of net inflows into the Japanese cash equity market [3][14] - India offshore-listed ETFs have experienced a resurgence in net inflows of approximately USD 1.8 billion since late March 2025, following a period of net selling [3][18] - Taiwan onshore ETFs have seen significant net inflows of around USD 43 billion since the start of 2024, providing strong support for Taiwanese equities [3][22] - Korea offshore ETFs have attracted USD 1.4 billion in net inflows over the past 6 weeks, driven by renewed interest in AI and expectations of corporate governance reforms [3][25] Summary by Sections US Offshore-Listed ETFs - 11 out of the past 20 weeks have seen net-negative fund flows, totaling outflows of approximately USD 4.7 billion [3][5] - Significant net inflows of around USD 160 billion were recorded between June 2023 and February 2025 [3][5] Europe Offshore-Listed ETFs - Positive net inflows in 21 out of the past 24 weeks, totaling approximately USD 15 billion [3][7] Emerging Markets (EM) ETFs - Positive flows in 19 out of the past 23 weeks, totaling USD 13.6 billion [3][9] - Recent decline in interest for EM-ex China funds, with net outflows of USD 2.9 billion [3][11] Japan Offshore-Listed ETFs - Modest net buying observed, with a preference for direct stock investments indicated by foreign net inflows into the Japanese market [3][14] India Offshore-Listed ETFs - Net inflows of approximately USD 1.8 billion since late March 2025, following previous net selling [3][18] Taiwan ETFs - Significant net inflows of around USD 43 billion since the start of 2024 for onshore ETFs [3][22] Korea Offshore-Listed ETFs - Attracted USD 1.4 billion in net inflows over the past 6 weeks, driven by specific factors [3][25]