Bank of America Securities Report: Clients Increase Equity Purchases by $0.6 Billion, ETFs Lead Inflows
In a recent note, Bank of America Securities revealed that its clients made modest equity purchases last week, bringing in $0.6 billion after a week of outflows. Investors focused on both single stocks and exchange-traded funds (ETFs), with the latter seeing the larger inflows.
Private clients and corporates were the primary net buyers, marking the first inflows from this group since early September. Meanwhile, institutional and hedge fund clients continued to sell equities for the second consecutive week.
Corporate buybacks slowed but remain above seasonal norms, with trailing 52-week buybacks at an all-time high. As tax-loss selling season approaches, institutional clients' stock sales tend to rise, especially ahead of the October 31 deadline for most mutual funds to realize capital gains.
BofA's clients purchased stocks across six of the 11 sectors last week, with Consumer Discretionary, Communication Services, and Health Care leading the inflows. Tech and Industrials saw the largest outflows, with net sales of Tech hitting their highest level since August.
Real Estate remains on a seven-week selling streak, but BofA continues to view the sector favorably for income and quality. In terms of ETF flows, Utilities led the way in inflows, with Consumer Discretionary, Real Estate, and Health Care ETFs also attracting positive flows.
Clients showed interest in both Growth and Value ETFs, while selling off Blend ETFs. They favored large-cap and broad-market ETFs but were net sellers of small and mid-cap ETFs.
In summary, Bank of America Securities' report highlights the recent trends in equity purchases and ETF flows among its clients. The data shows a shift towards certain sectors and types of investments, with implications for individual investors as tax-loss selling season approaches. Understanding these trends can help investors make informed decisions about their portfolios and potential opportunities for growth.