Bank of America Clients Pour the Most Cash Into ETFs Since 2017

Bank of America Corp. clients bought $2.8 billion of US stocks last week, marking a sixth straight week of equity inflows at the bank, as they made heavy purchases of exchange-traded funds and sold tech shares, BofA strategists led by Jill Carey Hall wrote in a note Tuesday.

Investors poured the most money into ETFs since 2017 after five straight weeks of single-stock inflows. The biggest outflows for the week ended Dec. 16 were from technology stocks, which BofA clients sold for the first time in six weeks, followed by health care, while consumer staples and consumer discretionary saw the biggest inflows. Customers sold stocks in seven of the 11 major S&P 500 Index sectors.

Yet again, institutional clients were the lead buyers. After selling the previous two weeks, hedge funds were buyers as well. Meanwhile, retail clients sold equities after buying the prior week.

“Private clients are typically big sellers in December amid tax loss selling by individual investors,” the strategists wrote. The group tends to be large net buyers in January, while institutional clients tend to rebound in the months following October, as a result of tax-loss selling by mutual funds, they added.