Analyst Ratings January 27, 2026

JPMorgan Delta One Desk Flags Shift From U.S. to International Equity ETFs

Weekly flows show meaningful outflows from U.S. equity ETFs while developed and emerging market ETFs attract strong inflows; fixed income and select commodities see mixed demand

By Jordan Park UNG
JPMorgan Delta One Desk Flags Shift From U.S. to International Equity ETFs
UNG

JPMorgan’s Delta One Desk reports a marked rotation away from U.S. equity ETFs last week, with significant inflows into international developed and emerging market ETFs. Sector-level moves favored Materials, Energy, Financials and Healthcare, while Utilities and Consumer sectors saw outflows. Fixed income ETFs recorded above-average inflows led by Aggregate bonds and investment-grade corporates. Commodity ETFs experienced modest overall inflows, but energy-related funds, driven by profit-taking in natural gas, posted meaningful outflows despite a strong weekly return for the United States Natural Gas Fund (UNG).

Key Points

  • Investors rotated away from U.S. equity ETFs, with $5.9 billion of outflows, while international developed and emerging market ETFs drew $9.9 billion and $7.2 billion, respectively.
  • Fixed income ETFs recorded above-average inflows of $10 billion, led by Aggregate bonds ($4.9 billion) and investment-grade corporate bonds, while inflation-linked, long-dated Treasuries, and high-yield products saw outflows.
  • Commodity flows were mixed: energy ETFs experienced substantial outflows driven by profit-taking in natural gas, while Base Metals and Broad Commodities attracted strong inflows and Precious Metals saw moderately above-average inflows.

Market flows at a glance

JPMorgan’s Delta One Desk has identified a clear rotation in ETF flows, with investors withdrawing capital from U.S. equity exchange-traded funds and reallocating to international equity products. In the most recent week, U.S. equity ETFs registered net outflows of $5.9 billion, while international developed-market ETFs attracted $9.9 billion in net inflows and emerging-market ETFs drew $7.2 billion.

Emerging markets lead the international push

The report notes that the inflows into emerging-market ETFs were among the largest on record for the desk, coming in as the second-highest weekly total and trailing only the prior week. Regionally, the strongest inflows within emerging markets were recorded in Latin America (4.8z), Korea (2.2z), and MENA (1.9z).

Sector and style rotation within equities

At the sector level, Utilities experienced notable withdrawals (-$0.9 billion, -3.1z). Consumer Discretionary and Consumer Staples also saw meaningful outflows (-1.5z and an unspecified comparable figure, respectively). Conversely, Materials, Energy, Financials, and Healthcare each attracted roughly 1z of inflows during the week.

When examined by investment style, funds focused on Momentum and Growth recorded net outflows. In contrast, Thematic ETFs, call/put writing strategies, and single-stock ETFs drew inflows in the vicinity of 1z, indicating selective appetite for differentiated exposures despite broader style weakness.

Fixed income ETFs show above-average demand

Fixed income exchange-traded funds posted above-average net inflows totaling $10 billion for the week. Aggregate bond ETFs led the sector with $4.9 billion of inflows (2.6z), and investment-grade corporate bond funds also saw robust demand. By contrast, investors pulled money from inflation-linked bonds (-1.9z), long-duration Treasuries, and high-yield bond ETFs over the same period.

Commodity flows mixed amid profit-taking in energy

Commodity ETFs took in below-average net flows of $1 billion overall. Energy-focused ETFs recorded substantial outflows totaling $0.9 billion (-4.7z), a move the desk attributes largely to profit-taking in natural gas funds.

That profit-taking followed a sharp weekly performance for one vehicle: the United States Natural Gas Fund (UNG) returned 19.89% over the most recent week and is up 20.96% year-to-date, while showing a negative 13.53% return over the past 12 months. The fund is reported to trade with high volatility but remains profitable on headline metrics, with a reported price-to-earnings ratio of 6.58 and a current ratio of 426.18, indicating very strong liquidity on the balance-sheet-related measure cited.

Base Metals (1.9z) and Broad Commodities attracted strong inflows, while Precious Metals recorded moderately above-average inflows despite significant spot-price appreciation in recent periods - spot gold was reported up 8.5% and silver up 14.5% over the referenced time frame.

United States Natural Gas Fund disclosures

The United States Natural Gas Fund, LP has issued a series of recent monthly account statements. The fund, which is managed by United States Commodity Funds LLC, released its November account statement covering results for the period ended November 30, 2025. That November report follows monthly statements for October and September and includes a Statement of Income (Loss) and a Statement of Changes in Net Asset Value.

Each monthly release is furnished in accordance with Rule 4.22 under the Commodity Exchange Act and is filed with the Securities and Exchange Commission. The statements are available as Exhibit 99.1 to the fund's Form 8-K filings, providing investors with the detailed financial information described in those filings.


Summary and context for investors

The Delta One Desk's flow read underscores a tactical shift among ETF investors away from U.S. equities and toward international developed and emerging markets, alongside selective demand in fixed income and differentiated equity strategies. Commodities exhibited a split pattern, with base metals and broad commodity exposures drawing interest while energy-related ETFs, particularly natural gas products, experienced marked outflows amid recent sharp price moves.

Methodology note

The figures and categorizations reported above are drawn from the Delta One Desk's flow analysis as presented for the referenced week. Where the desk uses shorthand notations - such as 'z' accompanying certain flow measures - those notations are reproduced as provided in the desk's reporting.

Risks

  • Elevated volatility in energy-related ETFs - exemplified by large weekly gains for the United States Natural Gas Fund (UNG) followed by investor profit-taking - could lead to abrupt flow reversals in commodity-focused products.
  • Outflows from Momentum and Growth equity style funds may signal reduced appetite for higher-beta strategies, potentially impacting equity sectors sensitive to style rotations such as Consumer Discretionary and Technology.
  • Withdrawals from inflation-linked bonds and long-duration Treasuries highlight uncertainty in fixed income positioning, which could affect investors seeking inflation protection or duration exposure.

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