BofA clients keep selling stocks, but ETF buying persists
SPY•Bank of America clients were net sellers of US equities last week, with $3.5 billion in individual-stock outflows, while adding $2.3 billion to equity ETFs for a second straight week.
1. Stock outflows continue
Bank of America clients extended a recent risk-off trend last week as the S&P 500 dipped 0.5%. Investors sold $3.5 billion of individual stocks, following roughly $15 billion in outflows the previous week, but added $2.3 billion to equity ETFs.
2. Investors shift exposure
Retail investors drove much of the selling, marking their second consecutive week of equity outflows. Hedge funds also reduced exposure, while institutional investors were buyers. Selling spanned companies of all sizes; communication services had the largest sector outflows, while consumer discretionary attracted the strongest inflows.
3. Buybacks and ETF demand
Corporate repurchases accelerated for a fourth straight week but remained slightly below seasonal norms. Technology funds attracted the largest ETF inflows, while demand for dividend, quality and multi-factor ETFs grew as investors rotated away from momentum strategies amid easing rates and renewed concerns about AI spending.
