Stock Markets June 17, 2026 07:29 AM

BofA Clients Trim Single-Stock Holdings but Rotate Back into Tech and ETFs

Bank of America data show institutional selling in single names offset by continued ETF purchases and heavy hedge fund buying

By Sofia Navarro
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Bank of America’s latest equity client flow trends report shows clients were net sellers of U.S. single stocks last week while continuing to accumulate equity ETFs. Institutional investors led the single-stock selling, private clients extended their selling streak, and hedge funds were substantial net buyers. Sector flows were mixed, with Technology attracting the largest inflows and Health Care and Financials facing multiweek outflows.

BofA Clients Trim Single-Stock Holdings but Rotate Back into Tech and ETFs
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Key Points

  • Clients were net sellers of single stocks totaling $2.8 billion while buying $0.6 billion of equity ETFs.
  • Institutional clients led single-stock selling; hedge funds were significant net buyers (98th percentile since 2008).
  • Sector flows were mixed: Technology and Communication Services saw inflows, while Health Care and Financials experienced multiweek outflows; Real Estate recorded seven weeks of consecutive buying.

Bank of America’s most recent equity client flow report indicates that clients were net sellers of U.S. equities last week, a move led by outflows from individual stocks even as purchasers continued to add to equity exchange-traded funds.

Single-stock selling totaled $2.8 billion, while clients purchased $0.6 billion of equity ETFs. Institutional clients were the primary sellers of single stocks for the second week running, and private clients continued to sell for a fourth consecutive week. By contrast, hedge funds were heavy net buyers, with their net flows ranking in the 98th percentile since 2008.

Flow behavior by market-cap showed selling pressure in large- and mid-cap names while buyers favored small caps. Notably, the four-week average for combined stock and ETF flows into small caps turned positive for the first time since late April.

Sector-level activity was uneven. Clients sold stocks in seven of 11 sectors, with Health Care and Financials registering the largest outflows; those two sectors have now seen outflows for three and four consecutive weeks, respectively. Technology stocks drew the biggest inflows last week after experiencing outflows in the prior week, and Communication Services enjoyed inflows for the first time in six weeks. Real Estate recorded the longest active buying streak among sectors, extending to seven straight weeks.

Bank of America strategists also highlighted a divergence in flows tied to the Energy theme since the conflict began in March. Industrials - described by the strategists as a more crowded and expensive area - accumulated substantially larger cumulative inflows (stock plus ETF) than Energy. Over the same period clients bought Energy ETFs while concurrently selling Energy stocks.

Within the ETF complex, investors showed a preference for Value and Blend exposures over Growth. ETF purchases spanned most size categories except mid-cap ETFs, which did not see net buying. Sector ETF leaders included Industrials and Financials, while Materials ETFs experienced their largest weekly outflows since July 2022. Technology sector ETFs were sold for a second straight week even as direct purchases of Technology stocks rose.

Separately, corporate buybacks by clients slowed for a third consecutive week, although the rolling four-week average rose to its highest point since late March. On a year-to-date basis, Bank of America reported that annualized buybacks by clients are running slightly below full-year 2025 levels and remain below 2024’s record pace, but are above buyback levels observed from 2016 through 2023.


Contextual note - The flow patterns described reflect the latest weekly snapshot reported by Bank of America and capture client behavior across single stocks, ETFs, and buyback activity without drawing causal conclusions beyond the reported figures.

Risks

  • Ongoing outflows from Health Care and Financials could pressure those sectors if the trend continues - impacting investors exposed to large- and mid-cap stocks.
  • Materials ETFs recorded their biggest outflow since July 2022, introducing near-term uncertainty for commodity-linked sectors and related funds.
  • A slowdown in corporate buybacks for three straight weeks could reduce a source of demand for equities, particularly affecting firms that rely on buybacks to support share prices.

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