What Are Fund Managers Buying This Week? US and Growth Stock ETFs

TL;DR

Fund managers are buying US large-cap and growth stocks, with almost $7 billion flowing into S&P 500-tracking ETFs. Bank of America’s August survey found only 26% of money managers had a negative stock outlook, down from 44% in July, while US and technology allocations rose 15%. Read on for the specific ETFs, market signals, and performance figures behind this shift.

Transcript

hello and welcome to ticker tapes today we're back in the world of etfs large cap equities are back in favor it seems bank of america published its fund manager survey for august and it showed that institutions are moving back into u.s stocks money managers surveyed by the bank are less bearish than they were a month ago with only 26 percent now sa... Read More

Key Insights

• 🌎 Bank of America's fund manager survey shows an improved sentiment towards large-cap US stocks, with a decrease in bearish sentiment and increased asset allocations to US and technology.
• 💪 ETF flows data indicates significant inflows into US equity trackers, particularly those tracking the S&P 500, reflecting strong investor interest in the market.
• ❓ The survey reveals a preference for growth stocks over value, highlighting a shift in investor sentiment.
• 🙈 The convergence of global equities, as seen in the performance of the ACWI ETF, suggests growing confidence in the stock market.
• 😨 The downturn in the VIX index, indicating decreased fear and increased greed among S&P 500 investors, further supports a positive market sentiment.

Questions & Answers

Q: What are fund managers buying this week?

Fund managers are moving back into US stocks, particularly large-cap equities and growth stocks. The top three ETFs by weekly inflows were US equity trackers, with almost $7 billion flowing into ETFs that track the S&P 500.

Q: What did Bank of America’s August fund manager survey reveal?

The survey found that money managers were less bearish than they had been a month earlier. Only 26% reported a negative outlook on stocks, compared with 44% in July.

Q: How much are fund managers allocating to US and technology stocks?

Asset allocations to US and technology stocks rose by 15% during the month. Fund managers held an average 10% overweight position in US stocks.

Q: Why are the Bank of America survey results meaningful?

The survey participants collectively manage more than $700 billion. Their reduced bearishness and increased allocations therefore represent a meaningful shift toward US stocks.

Q: How much money flowed into S&P 500 ETFs?

Almost $7 billion flowed into ETFs tracking the S&P 500. The index was up 11.44% over the previous month and 4.43% over the previous week.

Q: Do fund managers prefer growth stocks or value stocks?

Fund managers favored growth stocks in the August survey. For the first time in two years, a majority expected growth to deliver better returns than value over the next 12 months.

Q: Which growth ETF attracted new investment?

The SPDR Portfolio S&P 500 Growth ETF ranked third in the weekly inflows table. It received just over $1 billion in new investment during the previous week.

Q: What market signals supported greater confidence in stocks?

The ACWI ETF posted 17 new highs and gained just over 10% during the month, while the VIX declined. Risk-off funds also weakened: TAIL fell 5.9% during the week, and BTAL lost 11.76% over five days and posted 12 new monthly lows.

Summary & Key Takeaways

• Bank of America's fund manager survey for August indicates a more positive outlook on US stocks, with a decrease in bearish sentiment and a 15% increase in asset allocations to US and technology.

• ETF flows data shows significant inflows into US equity trackers, specifically those tracking the S&P 500, which has performed well in the last month and week.

• The survey also reveals a preference for growth stocks over value, and the convergence of global equities suggests increasing confidence in the stock market.