BofA Securities’ weekly fund flow report reveals interesting movements in the markets. One key observation is the substantial net outflows from consumer discretionary stocks (NYSEARCA:XLY), marking the sector’s largest exodus since February 2022. Clients unloaded a total of $1.1 billion from this area over the week.
Conversely, Treasuries experienced their first outflow in three months, while investment-grade bonds registered the smallest inflow year-to-date.
Overall, equity markets saw $3.6 billion in inflows this week, driven by substantial investment in ETFs amounting to $15.3 billion. In contrast, mutual funds experienced outflows of $11.7 billion.
Examining the bond market, recent data indicates $4.4 billion in inflows over the past 18 weeks. Furthermore, precious metals witnessed outflows totaling $0.6 billion over the past three weeks.
The breakdown of BofA flow data by investment style provides further context:
- Inflows for U.S. large cap stocks amounted to $8.4 billion
- U.S. value stocks witnessed outflows totaling $1.1 billion
- U.S. growth stocks experienced outflows of $2.3 billion
- U.S. small cap stocks saw outflows reaching $2.6 billion
Exploring Consumer Discretionary Trends