Bank of America’s global fund manager survey revealed that respondents still believe U.S. equities will be the best for market returns, while highlighting that defensive sectors such as healthcare and consumer staples were noticing an increase in allocations. The survey conducted by BofA asked: “What asset class will perform the best in 2025?” In response, 27% of fund managers indicated U.S. equities, another 21% said global equities, and 14% chose Bitcoin ( BTC-USD ). From an asset allocation perspective, the survey pointed out that 41% of investors are currently overweight equities, 6% are underweight commodities, 20% are underweight bonds, and 11% are underweight cash. The January survey also revealed that investors are increasing their allocations to healthcare and consumer staples, while scaling back on financials, utilities, and consumer discretionary sectors. From an overweight and underweight perspective, the survey highlighted that investors are most underweight in sectors such as energy, consumer staples, and utilities, while the most overweight sectors include technology, banks, and healthcare. See below a group of sector related exchange-traded funds: Consumer Staples: ( XLP ), ( VDC ), ( IYK ), ( FSTA ), ( KXI ), and ( RSPS ). Consumer Discretionary: ( XLY ), ( VCR ), ( FXD ), ( FDIS ), ( RSPD ), and ( RXI ). Energy: ( XLE ), ( AMLP ), ( VDE ), ( XOP ), ( OIH ), and ( IXC ). Financials: ( XLF ), ( VFH ), ( IYF ), ( FNCL ), ( IYG ), and ( FXO ). Healthcare: ( XLV ), ( VHT ), ( IHI ), ( IXJ ), ( IYH ), ( FHLC ), and ( FXH ). Info Tech: ( VGT ), ( XLK ), ( IYW ), ( FTEC ), ( IXN ), and ( RSPT ). Utilities: ( XLU ), ( VPU ), ( FUTY ), ( IDU ), ( FXU ), and ( JXI ). More on the markets Barclays says ‘buckle up’ for near-term volatility under new Trump administration Trump revokes Biden order that pushed for 50% EVs by 2030 Are Return Expectations For 2025 Too High? Wall Street Bulls Gets Some Rate Cut Mojo Back As S&P 500 Has Best Week In Months This Adjusted Chart Reveals A Hidden Risk In The Nasdaq
