SPY•SPY•Bank of America clients were net buyers of equities after the S&P 500 rose 1.2% and reached record highs last week, buying $1.1 billion of individual stocks while selling about $200 million of equity ETFs. Institutional investors led purchases, while clients favored small- and mid-cap stocks and trimmed large caps.
BofA clients returned to US stocks after stepping aside the previous week, according to a note published Wednesday by BofA Securities strategist Jill Carey Hall. They bought $1.1 billion of individual stocks, reversing near-record outflows the prior week, and sold about $200 million of equity ETFs—the first weekly ETF outflows since mid-June.
Institutional investors led the buying, ending a two-week streak of net selling; hedge funds and retail investors also bought. Clients favored small- and mid-cap stocks while trimming large caps. They bought stocks in six of the 11 S&P sectors, with consumer staples leading inflows, while utilities recorded a fourth consecutive week of outflows.
Technology and communication services attracted money after heavy outflows the prior week, and financials posted their first inflows in five weeks. Industrials extended their outflow streak to 11 weeks. Hall said the sector was crowded around themes including AI, manufacturing, defense and oil, and cautioned that the unwind may not be over; similar outflow streaks have averaged about 17 weeks and have often been followed by further relative underperformance. Corporate buybacks accelerated for a second straight week and remained slightly above seasonal norms, though rolling 52-week buybacks as a share of S&P 500 market capitalization were at their lowest since August 2021.
