Bank of America clients poured $2.3 billion into US equity ETFs last week while selling $100 million in individual stocks, continuing a three-week buying streak. Institutional investors led the charge for the third consecutive week, with private clients joining for their fifth straight week of purchases. Hedge funds bucked the trend, becoming net sellers for the first time since December.

Sector flows revealed stark divergences, with Communication Services attracting record inflows for a sixth week and Financials seeing sustained demand. Energy stocks gained traction amid improving ISM manufacturing data, while Consumer Discretionary suffered its worst outflows since March 2022. ETF buying spanned market caps and styles, with equal-weighted funds seeing their largest inflows since August.

Corporate buybacks slowed further, sinking to their lowest level relative to market cap since December 2023. The slowdown coincides with fourth-quarter earnings season and reflects continued caution among corporate treasurers despite the broader institutional appetite for risk assets.