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BOFA CLIENTS SCOOP UP STOCKS FOR SECOND STRAIGHT WEEK

BofA Securities equity and quant strategist Jill Carey Hall said clients kept buying U.S. stocks last week as the S&P 500 .SPX climbed around 1.2%, marking a second straight week of net inflows. Demand was strong in both individual stocks and ETFs, with clients purchasing about $5.1 billion of single stocks—one of the largest weekly totals in BofA's data going back to 2008—and another $1.8 billion of equity ETFs.

Institutional investors were the main drivers of the buying activity, posting their second-largest weekly net purchase of equities since 2008. The only larger buying week came in late 2020. Meanwhile, hedge funds were net sellers for the first time in five weeks, while retail investors remained net buyers for a third consecutive week.

Clients added exposure across large-, mid-, and small-cap stocks and ETFs. Notably, the four-week average flow into small- and micro-cap stocks reached a record high, a sharp turnaround after those segments experienced outflows during most of the year.

On the corporate side, share buybacks continued to slow, declining for a seventh straight week to their lowest level since October. While buyback activity remains above levels seen from 2016 through 2023, it is running slightly below both the full-year 2025 pace and the record levels reached in 2024.

Sector-wise, clients were net buyers in seven of the 11 S&P sectors, with technology and financials attracting the strongest inflows. Energy also drew significant interest, recording its largest inflows since March 2023 as renewed geopolitical tensions boosted investor attention.

On the other hand, communication services saw the heaviest selling and extended its outflow streak to seven consecutive weeks. Real estate, industrials and materials also recorded net outflows.

ETF flows followed a similar pattern. Clients bought growth, value and blend ETFs, with growth funds attracting inflows for the first time in six weeks. Most size categories also saw ETF buying, particularly large-cap, mid-cap and broad-market funds, although small-cap ETFs experienced net outflows.

By sector, investors bought ETFs in nine of the 11 sectors. Technology ETFs led the way, reflecting strong demand for large-cap tech stocks. Energy and materials were the only sector ETF groups to see net outflows.

(Terence Gabriel)

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