Investment Rating - The report indicates a broad-based buying trend across various client groups and sectors, with a particular emphasis on institutional-led buying [1][11][19]. Core Insights - Financials experienced significant inflows, marking the fourth-largest since 2008 and the largest since February, with a notable increase in institutional client purchases [3][11][14]. - Clients showed a preference for growth over value, particularly in the technology sector, which outperformed most other sectors [3][11]. - The report highlights a shift in client behavior, with private clients becoming net buyers for the fifth consecutive week, contrasting with institutional clients who have been net sellers post-crisis [9][19]. Summary by Relevant Sections Client Flows - Institutional clients were the biggest net sellers post-crisis, while private clients have recently turned net buyers [7][9]. - Hedge funds showed small net buying activity after a previous selling trend, while corporate buybacks have slightly accelerated but remain below typical seasonal levels [11][19]. Sector Performance - Financials saw the largest inflows, followed by Health Care, Industrials, and Energy, while Communication Services experienced the largest outflows [11][16]. - Cyclicals recorded their biggest weekly inflows since January 2019, indicating a strong interest in these sectors [11][14]. Market Capitalization - All market cap segments (large, mid, and small caps) saw inflows, with large caps leading the way [22][26]. - The report notes that clients sold equity ETFs for the first time in nine weeks, with outflows across various sectors, particularly in Staples and Real Estate [11][19]. ETF Trends - Technology ETFs had the strongest inflows, while Consumer Staples ETFs faced significant outflows [29][30]. - The report provides a detailed breakdown of ETF flows, indicating a preference for mid-cap and broad market ETFs over large and small-cap ETFs [32][34].

Investment Rating - The report indicates a bearish sentiment with institutional clients being the largest net sellers of US equities, while private clients are net buyers [10][11][25]. Core Insights - There has been significant divergence in trading flows, with institutional selling and retail buying reaching the largest cumulative gap since 2008, indicating a potential shift in market dynamics [10][11]. - The report highlights that institutional clients sold stocks across 8 of 11 sectors, with the largest outflows observed in Technology, Staples, and Health Care, while inflows were seen in Industrials and Financials [10][11]. - Corporate buybacks have accelerated but remain below typical seasonal levels, suggesting cautious sentiment among corporate clients [10][11]. Summary by Relevant Sections Client Flows - Institutional clients have been net sellers for three consecutive weeks, with outflows totaling $3.8 billion last week, marking the largest rolling four-week average outflows since just before the 2024 election [10][11]. - Private clients have been net buyers in 29 of the last 31 weeks, indicating strong retail interest in the market [10][11]. - Hedge funds returned to buying for the first time in four weeks, suggesting a potential change in strategy among these investors [10][11]. Sector Performance - The Technology sector experienced the largest outflows, while Industrials saw the most significant inflows, reflecting a rotation towards cyclical sectors [10][11][16]. - The report notes that clients bought equity ETFs for the sixth consecutive week, with inflows across major styles including Blend, Value, and Growth [10][11][30]. Market Capitalization Trends - Large-cap and mid-cap segments saw outflows, while small-cap stocks experienced modest inflows, indicating a preference for smaller companies amidst broader market volatility [10][11][24][72]. - The cumulative net buying trends show that institutional clients sold across all market cap sizes, while private clients bought across large, mid, and small caps [10][11][72].

Investment Rating - The report does not explicitly provide an investment rating for the industry or specific stocks within it Core Insights - The report discusses the moderation of inflows into US offshore-listed equity ETFs, with net outflows of approximately USD 4.7 billion over the past 20 weeks, indicating a shift in investor sentiment towards Europe and emerging markets (EMs) [1][3][5] - Europe-focused offshore ETFs have seen positive net inflows in 21 out of the past 24 weeks, totaling around USD 15 billion, suggesting a growing interest in European equities [3][7] - Emerging market ETFs have recorded positive flows in 19 out of the past 23 weeks, amounting to USD 13.6 billion, coinciding with the decline in US equity ETF inflows [3][9] - Interest in EM-ex China funds has declined recently, with net outflows of USD 2.9 billion over the past 18 weeks, contrasting with the significant inflows of USD 16.8 billion from October 2022 to October 2024 [3][11] - Japan offshore-listed ETFs have seen modest net buying, but foreign investors may be favoring direct stock investments in Japan, as evidenced by 13 consecutive weeks of net inflows into the Japanese cash equity market [3][14] - India offshore-listed ETFs have experienced a resurgence in net inflows of approximately USD 1.8 billion since late March 2025, following a period of net selling [3][18] - Taiwan onshore ETFs have seen significant net inflows of around USD 43 billion since the start of 2024, providing strong support for Taiwanese equities [3][22] - Korea offshore ETFs have attracted USD 1.4 billion in net inflows over the past 6 weeks, driven by renewed interest in AI and expectations of corporate governance reforms [3][25] Summary by Sections US Offshore-Listed ETFs - 11 out of the past 20 weeks have seen net-negative fund flows, totaling outflows of approximately USD 4.7 billion [3][5] - Significant net inflows of around USD 160 billion were recorded between June 2023 and February 2025 [3][5] Europe Offshore-Listed ETFs - Positive net inflows in 21 out of the past 24 weeks, totaling approximately USD 15 billion [3][7] Emerging Markets (EM) ETFs - Positive flows in 19 out of the past 23 weeks, totaling USD 13.6 billion [3][9] - Recent decline in interest for EM-ex China funds, with net outflows of USD 2.9 billion [3][11] Japan Offshore-Listed ETFs - Modest net buying observed, with a preference for direct stock investments indicated by foreign net inflows into the Japanese market [3][14] India Offshore-Listed ETFs - Net inflows of approximately USD 1.8 billion since late March 2025, following previous net selling [3][18] Taiwan ETFs - Significant net inflows of around USD 43 billion since the start of 2024 for onshore ETFs [3][22] Korea Offshore-Listed ETFs - Attracted USD 1.4 billion in net inflows over the past 6 weeks, driven by specific factors [3][25]

Jay Jacobs, BlackRock U.S. Head of Equity ETFs, and Roger Hallam, Vanguard global head of rates, share their outlooks for the rest of year, key trends to watch in the ETF space and the strategy behind their firms’ latest funds with CNBC’s Dominic Chu. ...

Investment Rating - The report upgrades the Energy sector to overweight amid record neglect and highlights potential benefits from provisions for domestic manufacturers in the tax bill [10][11][12]. Core Insights - Institutional clients have been the biggest net sellers of US equities, while private clients have returned to buying, marking a significant shift in client behavior [10][11][12]. - Energy stocks have seen the longest recent buying streak, with net buying for the last six weeks, contrasting with significant outflows in the Technology sector [10][11][12]. - The report notes that clients sold US equities for the first time in five weeks, primarily driven by institutional and hedge fund selling, while retail clients continued to buy [10][11][12]. Client Flow Trends - Institutional clients sold a net of $2.59 billion in equities last week, while private clients bought $0.84 billion [10][11][12]. - Hedge funds were net sellers for the first time in three weeks, with a total outflow of $1.48 billion [10][11][12]. - Retail clients have been net buyers in 24 of the past 25 weeks, indicating strong retail interest in equities [10][11][12]. Sector Performance - The Technology sector experienced the largest outflows, with net selling of $1.79 billion, while the Energy sector saw inflows of $0.32 billion [10][11][12]. - Health Care and Real Estate also faced significant selling pressure, while Communication Services ETFs recorded the biggest inflows [10][11][12]. ETF Trends - Clients sold equity ETFs for the first time in five weeks, with a notable shift from Blend/Growth ETFs to Value ETFs [10][11][12]. - Large-cap ETFs saw inflows, while Small/Mid-cap and Broad Market ETFs experienced outflows [10][11][12]. Market Capitalization Insights - Large-cap stocks saw significant outflows of $1.92 billion, while Small and Mid-cap stocks recorded inflows [10][11][12]. - The report indicates a trend where institutional clients are favoring Mid-caps over Large-caps [10][11][12].