Bank of America: Institutional Investors Net Buy US Stocks as ETF Inflows Reach $4.3B, Defensives Lead Flows

Bank of America noted that institutional clients were net buyers of U.S. equities last week, with ETF inflows totaling $4.3 billion, the strongest since December 2022, even as roughly $2.6 billion shifted out of individual stocks.

Industry fund flows signaled a defensive rotation, with outflows from technology and communication services sectors and inflows into consumer staples and healthcare names.

With buyback volumes still below seasonal norms, institutional investors have largely displaced retail investors as the main dip buyers this year, a development that has underpinned selective equity resilience.