Unlock Premium Data: Up to 50% Off InvestingProCLAIM SALE

Despite yields at 5%, BofA clients continue to buy stocks

EditorYael Jeanne Klempner
Published 24/10/2023, 10:36 pm
© Reuters.
US500
-
EWT
-
AEIS
-
IWM
-
QID
-
QLD
-
TBT
-
ERII
-
SMPL
-
SPTM
-
SMAL11
-
ET
-
EFR
-
IWF
-
EWX
-
PPLT
-
MOAT
-
SPYG
-
SLYG
-
XUT
-
VEE
-
EFOI
-
VGRO
-
BITO
-

In the 12th consecutive week of equity inflows, Bank of America clients remained net buyers of U.S. equities ($1.0B) despite the S&P 500 experiencing a 2.4% decline.

Inflows were primarily seen in ETFs, while single stocks saw their first week of outflows since August. Hedge fund and retail clients led the inflows, with institutional clients' sales being the largest since July.

Retail clients have been net buyers for five consecutive weeks, and hedge fund clients for four consecutive weeks.

Client activity showed that they sold stocks in seven of the 11 GICS sectors, with Consumer Discretionary experiencing the largest outflow since July, and Industrials also saw significant outflows.

Real Estate, on the other hand, led inflows for the fifth consecutive week, marking the largest inflow since May 2022. Cyclicals saw substantial outflows despite having more positive flows than defensive sectors in most weeks since early August.

“We became more positive on cyclicals this spring, and our sector views have a cyclical tilt,” analysts wrote in a note.

In the ETF space, clients continued to invest in SMID/Broad Market and Value categories. They bought Value ETFs and SMID caps, while Large, Growth, and Blend ETFs experienced outflows.

Value ETFs received inflows for the 17th consecutive week, while Growth ETFs saw outflows for the first time in 11 weeks. Most sector ETFs experienced outflows, with Utilities ETFs leading the outflows, and Energy ETFs leading the inflows.

Corporate client buybacks accelerated last week but have been consistently tracking below seasonal trends since May. Year-to-date, corporate client buybacks as a percentage of S&P 500 market capitalization (0.15%) are below the highs seen in 2022 (0.19%) at this time.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.