BofA Securities: Clients continue selling US equities for four straight weeks

BofA clients were net sellers of U.S. equities for the fourth straight weeks, with outflows remained chiefly in large caps as well as mid-caps, while small caps registered inflows.

Clients sold around $0.8 billion in single stocks and $2.2 billion in equity ETFs, its first outflow since April and the biggest outflow since January 2024.

Hedge funds led selling, registering outflow for the fourth straight weeks, and institutional investors have been sellers for three straight weeks. Private investors sold for the fifth time in the last seven weeks.

The brokerage firm said that clients sold stocks in five out of 11 sectors, led by financial sector (XLF [https://seekingalpha.com/symbol/XLF]) and Communication Services sector (NYSEARCA:XLC [https://seekingalpha.com/symbol/XLC]).

On the other hand, Technology sector (NYSEARCA:XLK [https://seekingalpha.com/symbol/XLK]) saw the largest inflows, followed by Real Estate/Materials.

“Rolling 4-wk avg. Financials flows are the most negative since mid-Nov. amid a weakening job market and investor concerns over credit,” highlighted Jill Carey Hall, BofA Securities equity and quant strategist.

According to the weekly report, clients bought blend & value ETFs vs. sold growth ETFs for a third week.

The brokerage firm said that clients also sold broad market and small cap ETFs.

“Clients bought ETFs in seven of the 11 sectors, led by Health Care; Utilities ETFs saw the largest outflows,” noted Jill Carey Hall.

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