Institutional net buying drove the largest ETF inflows since December 2022, with defensive sectors gaining and tech outflows highlighting shifting market sentiment, according to Bank of America.
Bank of America reported that institutional clients were net buyers of U.S. stocks last week, contributing to $4.3 billion in ETF inflows—the highest since December 2022—despite $2.6 billion in stock sales overall. Defensive sector investments favored consumer staples and healthcare, while technology and communications saw net outflows. Hedge funds and retail investors were net sellers during the same period.