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Investing.com -- Bank of America (BofA) Securities reported broad-based equity inflows last week among its clients as the market edged higher, with the S&P 500 gaining 0.6%.
Clients were net buyers of U.S. equities to the tune of $1.8 billion, reversing three consecutive weeks of selling. Purchases spanned single stocks and exchange-traded funds (ETFs), with inflows across large, mid, and small caps.
Private clients led the buying activity and have now posted inflows in 30 of the past 32 weeks. Hedge funds also turned net buyers for the second week in a row.
In contrast, institutional clients continued their selling streak, recording net outflows for the 10th time in the last 11 weeks.
According to BofA, the most notable sector-level movement came in Industrials. “Rolling 2-week inflows into Industrials were the 2nd largest in our data history (largest since Mar. 2015),” BofA strategists said, with inflows ranking in the 97th percentile when adjusted for sector market cap.
Financials also saw strong demand following upbeat earnings reports from banks.
On the flip side, clients sold Utilities for the ninth straight week, marking the biggest weekly outflow since October 2023. Energy also posted its fifth straight week of outflows. Consumer Discretionary stocks saw the largest net selling of any sector during the week.
Overall, “clients bought cyclical sectors vs. sold defensives (in aggregate)” for a second consecutive week, suggesting a tilt toward risk-taking as the rally grinds on.
In the ETF space, flows remained positive for the 13th consecutive week, with buying spread across value, growth, and blend styles. Large and small-cap ETFs posted gains, while mid-cap ETFs saw modest outflows.
Sector-wise, ETF buying was concentrated in Health Care and Consumer Discretionary, but Technology ETFs experienced the largest outflows for the third week in a row.
For corporate buybacks, BofA notes the activity picked up at the start of earnings season, though it remained below historical seasonal norms for the third consecutive week.