From Financial Modeling Prep: 2025-04-08 07:17:00

Despite a sharp market decline, investors put $8 billion into U.S. equities, marking a decade-high inflow. Institutional investors led the charge, with private clients remaining bullish. Hedge funds turned positive, and corporate buybacks rose. Flows favored cyclical sectors over defensives, indicating confidence in long-term recovery.

Technology and industrials saw significant inflows, while consumer discretionary and utility sectors experienced outflows. Financials led ETF buying, with energy ETFs seeing the largest outflows. Despite macro uncertainty, investors continue to favor cyclical sectors over defensive ones.

The strong inflows during market drops suggest a “buy the dip” mentality. Institutional investors returning signal confidence in fundamentals. Preference for cyclical sectors over defensives indicates belief in economic resilience. ETF rotation shows tactical shifts, with growth strategies seeing no inflows amid rising interest rates.

BofA’s report reveals smart money’s response to market stress, with confidence in the underlying economy and U.S. equity performance. As tariff tensions continue, the focus is on whether this optimism will be validated or tested further. Investors can monitor market activity and ETF sector weightings using data-driven APIs for informed decision-making.



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