Overview

Bank of America (BofA) reported that its clients were net buyers of U.S. equities for a second consecutive week, with the S&P 500 gaining 1.2 % during the period.

Equity Inflows

Clients allocated $5.1 billion to single‑stock purchases, marking the third‑largest weekly single‑stock inflow since 2008, and invested $1.8 billion in equity exchange‑traded funds (ETFs). Institutional investors recorded their second‑biggest weekly purchase since 2008 (the largest having occurred in late 2020), ranking 20th highest when normalized by the S&P 500 market capitalisation. Hedge funds posted net selling for the first time in five weeks, while retail investors continued buying for a third straight week.

Sector‑Specific Flows

Financials single‑stock inflows reached their second‑largest ever, placing the week in the 98th percentile when normalised by the sector’s market cap within the S&P 500. Technology stocks experienced a comparable surge, achieving their second‑largest inflow week and ranking in the 93rd percentile on a market‑cap‑adjusted basis. Energy recorded its strongest inflows since March 2023, attributed to renewed geopolitical tensions. Conversely, Communication Services suffered the largest outflows since December and now endure a seven‑week consecutive outflow streak, the longest in the report. Real Estate, Industrials and Materials also posted net selling.

ETF Activity

ETF buying was broad‑based across styles, with growth‑oriented ETFs seeing their first inflows in six weeks and participation across most size segments, although small‑cap ETFs experienced net selling. ETF purchases were concentrated in nine of the eleven sectors, led by Technology, mirroring the strong Tech stock inflows. Only Energy and Materials ETFs recorded net outflows.

Corporate Buybacks

Corporate client‑initiated buybacks declined for a seventh straight week, reaching their lowest level since October. On an annualised basis, client buybacks are slightly below the projected full‑year 2025 levels and below the 2024 record, yet remain above the range observed between 2016 and 2023.