Bank of America (BofA) Securities said its clients bought $4.5 billion worth of U.S. stocks last week, marking the second consecutive week of inflows. Clients added exposure to both single stocks and exchange-traded funds (ETFs), with strong interest in large- and small-cap names, while mid-caps saw modest selling.
Institutional and private clients were net buyers again, continuing the previous week’s trend. Hedge funds, by contrast, extended their selling streak to a fourth straight week. Year-to-date, hedge fund outflows are the largest on record for any comparable period since 2008.
Private clients maintained a historic buying run, with inflows recorded for the 21st week in a row—the longest such streak in data going back to 2008. These flows included both ETFs and individual stocks, with purchases spanning eight of the eleven sectors so far this year.
Corporate buybacks also picked up pace week over week and have now surpassed typical seasonal trends for the fifth straight week. "After accelerating during earnings season, buybacks typically peak around now and begin to decelerate over the next 8 weeks," BofA strategists said in a note.
Clients bought equities in 10 of the 11 sectors, the broadest sector participation in nearly a year. Technology and Health Care led the buying, while Utilities—despite being a top-performing sector this year—was the only one to see outflows. Materials stocks continued to attract steady inflows, extending their buying streak to ten consecutive weeks.
ETF flows were also broadly positive, with purchases seen across all major market caps and investment styles—Value, Growth, and Blend—for the first time in seven weeks.
Despite this, sector ETF flows were mixed, with outflows led by Energy, Tech, and Materials. Energy ETFs, in particular, have experienced the largest net outflows year-to-date, even as strategists recently upgraded the sector to overweight due to under-owned positioning. In contrast, Health Care ETFs recorded their biggest weekly inflows in over a year.
