Institutional investors continue to pull billions from U.S. equity markets while retail investors have stayed net buyers.

Through July 6, large institutions such as investment managers and pension funds have withdrawn $201.8 billion from equity markets in 2022; retail investors have poured in $12.5 billion, according to S&P Global Market Intelligence data. Hedge funds pulled $13.8 billion from the market from Dec. 31, 2021, to July 6.

Institutional investors tend to be key drivers of money outflows during bear markets, while hedge funds and retail investors move in and out of the market more frequently. Institutional investors have steadily withdrawn from the market as it entered a bear phase earlier in 2022. From the start of the year to its June 16 trough, the S&P 500 fell by 23%.

Declines have hit nearly every stock market sector except energy, which continues to rally off high prices for oil and other commodities. Consumer discretionary stocks continue to fall, impacted by inflation increasing at a rate not seen in over 40 years.

From June 1 into the first week of July, institutions reduced exposure by $35.5 billion, selling 8 out of 10 sectors, particularly technology, which saw a 1.1% decline over that time.

Retail investors in June were net sellers in half of all industrial sectors. They increased their exposure the most, by 60 basis points, in consumer services stocks while withdrawing the most from basic materials.

Hedge funds decreased their exposure by about $2 billion from June 1 to July 6, increasing by 3.4% in energy and decreasing by 5.8% in real estate.

The data for this article is provided by the S&P Global Issuer Solutions team. For more information, please contact Christopher Blake at Christopher.blake@spglobal.com.