BofA clients pulled a record net $14.8 billion from individual stocks last week, while buying $2.8 billion of equity ETFs. Technology stocks had their largest outflow on record, as the S&P 500 fell 1.9%.
BofA clients turned net sellers of U.S. equities last week as the S&P 500 fell 1.9%. In a Wednesday note, BofA Securities strategist Jill Carey Hall said clients withdrew a record $14.8 billion from individual stocks, more than offsetting $2.8 billion of ETF purchases.
Institutional investors led the selling for a third straight week, with one of their largest weekly outflows since BofA began tracking the data in 2008. Retail investors also sold after buying stocks the prior two weeks, while hedge funds became sellers for the first time in five weeks. Hall said October typically brings heavy institutional selling due to mutual fund tax-loss harvesting, but this year’s pace has been unusually strong.
Technology stocks had their largest outflow on record, while industrials recorded their largest weekly outflow ever and extended their selling streak to 12 weeks. Energy attracted the strongest inflows, ending six weeks of outflows; clients also bought real estate and consumer staples. Clients bought ETFs across investment styles and market-cap categories, with technology ETFs seeing the largest outflows and healthcare ETFs the largest inflows.
