Bank of America reported that its clients were net sellers of U.S. equities in the week ended June 5, driven by the largest single-stock outflows the bank has recorded. Total single-stock redemptions hit $14.2 billion for the week, a move that coincided with the S&P 500’s steepest weekly decline since April 2025, when the index fell 2.6% over the week.
Despite the heavy selling of individual names, investors remained buyers of equity exchange-traded funds. Clients purchased ETFs for the eleventh consecutive week, adding $0.3 billion during the period.
Technology equities were the clearest target of the selling pressure. According to Bank of America strategists, tech experienced its largest outflows since the bank began tracking single-stock flows in 2008, or its largest outflows as a percentage of market capitalization since early 2014. Institutional clients led the tech unwind, though hedge funds and private clients also sold tech names during the week.
The single-stock outflows were concentrated in large-cap companies; conversely, clients were net buyers of small- and mid-cap equities. Institutional investors spearheaded the broader selling, recording their most significant outflows since mid-March after five straight weeks of net purchases. Private client net sales reached their highest level since November 2024.
Within the institutional cohort, broker-dealer clients accounted for a large portion of the single-stock redemptions, offloading $6.4 billion of single stocks during the week.
Outside of Technology, the Communication Services sector registered outflows for a fifth consecutive week, though at a much smaller scale compared with the tech exodus. Only three sectors attracted net inflows on the single-stock side: Industrials, Real Estate, and Utilities. Real Estate in particular saw inflows for the sixth straight week.
On the ETF front, client flows showed a rotation toward value and blend strategies and away from growth exposures. Health Care ETFs logged their largest inflows since October 2021. By contrast, Tech ETFs suffered the biggest sector ETF outflows during the week, followed by Financials.
Bank of America also noted a moderation in corporate buybacks, which slowed for a second consecutive week. Nonetheless, the rolling four-week average of buybacks rose to its highest level since late March. On a trailing 52-week basis, buybacks as a percentage of S&P 500 market capitalization remained at their lowest level since late 2023.
Market data snippets included in the reporting showed intraday moves for several tickers and indices, including US500, SPSY, IXTTR, SIXC, SIXI, SIXRE, and SIXU.