BofA clients poured $10 billion into equities last week, most since January 2017 By Investing.com

Investing.com — BofA Securities stated that its shoppers continued to purchase U.S. equities for the seventh straight week, throughout which the index declined by 2%. Particularly, inflows reached $10 billion – the second-largest quantity since 2008 and the most important since January 2017. 

Much like latest weeks, purchases have been unfold throughout each particular person shares and exchange-traded funds (ETFs), with stronger inflows directed towards single shares. Massive-cap shares noticed the majority of the shopping for exercise, whereas small caps skilled extra subdued inflows.

Institutional and retail traders elevated their fairness holdings for an additional week – the third for establishments and the second for retail shoppers. In distinction, hedge funds have been web sellers for the second consecutive week.

The rolling four-week common of inflows from institutional shoppers hit its highest level in 9 months, reflecting a typical sample of renewed shopping for exercise following October’s tax-loss promoting by mutual funds.

“Personal shoppers usually are large sellers in December amid tax loss promoting vs. large web patrons in January. Whereas this group has been a purchaser of ETFs this month, it has bought single shares, although barely much less so than within the common December,” BofA strategists led by Jill Carey Corridor famous.

In the meantime, company buybacks from BofA’s shoppers have slowed throughout the week however stay above seasonal norms as a proportion of the S&P 500’s market cap. 12 months-to-date, company buybacks are on monitor to hit file ranges relative to market cap.

Throughout sectors, shoppers directed purchases towards six of the 11 sectors, with Know-how, Communication Companies, and Industrials main inflows.

Tech and Communication Companies sectors have recorded regular inflows over the previous seven and eight weeks, respectively, whereas Industrials noticed their largest influx since February 2022. Shopper Staples additionally drew vital curiosity, posting the best inflows since April.

However, Well being Care and Shopper Discretionary sectors led the outflows. Well being Care, particularly, has skilled withdrawals in 4 of the previous 5 weeks.

In ETFs, purchases have been unfold throughout eight sectors, with Industrials and Know-how ETFs seeing essentially the most shopping for exercise. Monetary and ETFs, nonetheless, led outflows.