Bank of America (BofA) Securities said its clients poured $6.1 billion into U.S. equities last week as they turned more bullish on risk assets following the previous week’s selling.
With the S&P 500 gaining 4.6%, flows were positive across both single stocks and exchange-traded funds (ETFs), and across all market cap segments—large, mid, and small.
Private and institutional investors were net buyers, while hedge funds sold equities for the third consecutive week.
“Private clients have been buyers for 19 weeks straight (longest start-of-year buying streak in our data history, since ‘08),” BofA strategists said in a Tuesday note.
These investors have consistently purchased both ETFs and single stocks year-to-date, although they trimmed single stock exposure last week. If the trend continues, 2025 could mark the first year private clients are net buyers of individual stocks, strategists said.
Corporate buyback activity also picked up pace week-over-week and remained above seasonal norms for the fourth straight week. BofA expects repurchases to increase further as earnings season continues.
In terms of sector positioning, clients favored cyclical stocks over defensives, a pattern that has held for much of the period since early March.
Tech and Consumer Discretionary led sector inflows, with the latter seeing its first weekly net buying in five weeks. Materials extended its streak of inflows to nine consecutive weeks.
On the other hand, Staples and Communication Services saw the largest outflows, despite strong earnings in the latter. Utilities also remained under pressure, posting outflows in 10 of the past 12 weeks despite outperforming the broader market year-to-date.
ETF flows reflected a similar preference for larger names and style diversification. Investors bought across all ETF styles—Value, Growth, and Blend—concentrating on large-cap and broad-market products. Small and mid-cap ETFs saw net selling.
Sector ETF flows were mixed, with outflows from Industrials, Materials, and Health Care.
Meanwhile, Consumer Discretionary ETFs attracted the most inflows and have seen buying in six of the last nine weeks.
