BofA: Global Rotation Accelerates into Q2 with S&P 500 ETF Outflows

Bank of America reports the global rotation from U.S. equities gaining steam into Q2 2026, as investors sold $15.4 billion in U.S. stock exposure, hitting ETFs like SPY and DIA, while buying international ETFs such as SCHF and FNDF. This builds on March's $15.4bn U.S. sales versus $16.7bn in Europe and $9.8bn in Japan, with year-to-date outflows at $131bn and 12-month net sales of $284bn. Heavy selling in Software (-$27.8bn), AI themes (-$93.3bn), and stocks like Meta signals bearish positioning that could pressure S&P 500 performance if flows persist.