Large-cap conviction hits 2022 high - BofA

Bank of America’s May Fund Manager Survey shows fund managers are tilting decisively toward large-cap stocks, with a net 54% expecting large caps to outperform small caps—the strongest conviction since June 2022. That positioning favors the US SP 500 and related large-cap ETFs and implies continued investor preference for big-cap stability and liquidity over small-cap risk. The survey shift may pressure small-cap benchmarks and boost flows into S&P 500 exposures (and their ETFs), affecting relative performance, sector leadership, and portfolio allocations if the conviction persists.