Institutional demand returned to the forefront of equity market activity last week, according to Bank of America’s weekly client flow data, lifting inflows into individual stocks after a short pause. The bank recorded $2.7 billion of net flows into single stocks, marking the first positive weekly total for direct stock purchases in four weeks.
Exchange-traded funds focused on equities moved in the opposite direction, with $0.8 billion of outflows, ending a four-week stretch of ETF inflows.
Examining year-to-date positioning, Bank of America notes that clients have been net sellers of individual equities by about $14 billion while purchasing roughly $6 billion of equity ETFs. That contrast underscores a broader preference for pooled equity exposure so far this year, even as last week tilted toward direct-stock buying.
Who was buying and who was selling
BofA strategist Jill Carey Hall attributed last week’s buying largely to institutional participants. As she wrote, "Buying was driven by institutional clients (biggest inflows since late Nov.) following two weeks of selling." Private clients also added to positions, remaining net buyers and purchasing equities in seven of the past eight weeks. Hedge funds, by contrast, registered net sales for a second consecutive week.
Market-cap and sector patterns
The flows were concentrated in larger-cap stocks. When combining activity in both individual stocks and ETFs, large-cap equities were the only market-cap segment to record inflows, reversing two prior weeks of outflows. Small and micro-cap names continued to see money exit, registering outflows for a fifth straight week. Bank of America noted the rolling four-week average for flows into small and micro-cap segments is now the most negative on record, a shift from the heavy inflows those segments experienced late last year.
By industry, clients bought into seven of the eleven major sectors, led by Communication Services and Technology. Communication Services has attracted inflows since late December and has drawn the largest cumulative flows so far this year. Energy stocks saw buying for the first time in five weeks, although those purchases occurred before the latest Middle East conflict escalated.
On the selling side, Financials and Consumer Discretionary posted the largest outflows. Financials have now experienced eight straight weeks of outflows, while Consumer Discretionary has seen selling for five consecutive weeks.
These flow dynamics highlight a bifurcated market in which institutional money can shift direction on short notice, while smaller-cap segments and some cyclical sectors continue to face sustained withdrawals. Bank of America’s weekly data provides a snapshot of how different client groups are positioning across market caps and sectors, but the bank’s figures also reflect ongoing variation between direct-stock purchases and ETF-based exposure.