Investing.com -- Bank of America (NYSE:BAC) Securities said its clients continued to invest in US equities last week, with net inflows of $3.6 billion, marking the second consecutive week of buying. Both single stocks and exchange-traded funds (ETFs) saw inflows, with clients purchasing ETFs for the first time in five weeks and single stocks for the fifth straight week.
According to BofA, private clients remained net buyers for the ninth consecutive week, while hedge funds turned to net buying for the first time in nine weeks.
Corporate buybacks remained robust despite high valuations and interest rates. As a percentage of the S&P 500’s market cap, buybacks reached near-record levels last week, ranking as the 13th largest weekly amount since 2010. This follows a record-breaking January for buybacks.
By sector, Financials experienced historic inflows, with clients heavily buying the sector. It marked the second-largest inflow into Financials on record, with only May 2009 seeing larger purchases. When adjusted for market cap, it was the biggest inflow since April 2023, following the SVB collapse.
Energy stocks also continued to attract buyers. "Clients have now been net buyers of Energy for the last six weeks after outflows most weeks since July," BofA strategists led by Jill Carey Hall said in a note.
Tech and Communication Services stocks also saw notable inflows.
Meanwhile, Industrials faced the largest outflows for the second consecutive week—its sixth week of selling—despite an improving PMI. Investors also pulled money from Health Care, Utilities, and Consumer Discretionary stocks.
In the ETF space, six of the 11 sectors recorded inflows, with Tech and Staples leading the way. In contrast, Health Care and Communication Services ETFs experienced the most significant outflows.
Style-wise, BofA clients purchased large-cap and value-focused ETFs last week while trimming positions in growth, blend, and small/mid/broad market ETFs.