Move over, tech. Wall Street has a new favorite sector, according to fund holdings data compiled by Bank of America Merrill Lynch: consumer discretionary.
The sector overtook tech as the most crowded last month, the data shows. Funds increased their relative weight (compared with the S&P 500) in consumer discretionary slightly in February, while strong selling of semiconductor stocks pushed tech to its lowest relative weight in 15 months, according to the holdings data. The data reported by Bank of America Merrill Lynch were as of Feb. 22 and were compiled using FactSet Ownership Database numbers.
Tech became the most crowded trade in U.S. stocks last year as the sector handily outperformed the broader market. In 2017, tech rose 37 percent while the S&P 500 gained 19 percent.