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Trading ideas and investment strategies discussed herein may give rise to significant risk and are not suitable for all investors. Investors should have experience in relevant markets and the financial resources to absorb any losses arising from applying these ideas or strategies.
BofA Securities does and seeks to do business with issuers covered in its research reports. As a result, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision.
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Key takeaways
- "Gridlock is good" may be less true today: expiration of the Tax Cuts & Jobs Act could be the largest tax hike in history.
- A tax expert answers 7 key questions about what's next. His view: taxes are unlikely to fall by much and planning is vital.
- We highlight always-useful tax-aware strategies: use ETFs; equities > bonds; Prudent Yield > benchmarks; buybacks > dividends
The fragile future of the Tax Cuts and Jobs Act
Investors and firms like certainty. That's why they often don't mind electoral gridlock. But "gridlock is good" may not be true this year, if it means the expiration of tax relief from the 2017 Tax Cuts and Jobs Act (TCJA). In this report, we survey possible tax changes and what they mean for portfolios.
Gridlock is good, unless it means higher taxes
TCJA expiration may mark the largest tax increase in history, worth $4.6tn. In some estimates, the top fifth of households could pay 2-6% more of their income in taxes; they account for almost 40% of US consumption. In our interview, David Kirk, a US Private National Tax partner from Ernst &Young explains what investors can do.
Key insights on the future of tax policy
1. Tax rates are unlikely to fall by much and the value of expert guidance has never been higher. There's a shortage of accountants and attorneys. 2. Higher capital gains rates are unlikely but watch out for an increase in the net investment income tax; 3. State & local tax (SALT) deduction caps will likely remain, but caps could be raised; 4. For planned future expenses, consider accelerating asset sales to lock in known tax rates.
Four trades for a tax-efficient portfolio
Tax-aware investment themes are always worth considering: 1. ETFs have saved $250bn in taxes since 1993; 2. In the long run, equities are more efficient than fixed income; 3. In bonds, our Prudent Yield theme offers 5.7% tax-adjusted yield vs. 3.5% for the US benchmark; 4. In stocks, efficient buybacks outperformed dividends by 2-3ppt/year.
This report is an overview; consult with a financial advisor or tax professional for advice.
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   The RIC Outlook
The 2024 election could cause substantial changes in tax policy. In this report, we survey each party's tax proposals and what that could mean for households and investors.
 In the event of divided government, the future of tax policy depends on party compromise. BofA economists think that some TCJA provisions could be extended, at least temporarily, but expect little else would be done (see The Great Debates).
Investment implications for changing tax regimes
In this report, we aim to highlight investor implications for changing tax regimes based on published platforms from each political party. Our goal is to raise awareness about potential tax issues and how to invest accordingly. There are many variables that impact asset prices, and this report only looks at issues from a personal tax perspective.
This report should not be viewed as a tax guide or a view on which tax policies will eventually be adopted.
 Navigating the next tax regime
 To help us navigate the potential path of taxes after the 2024 US election, we solicited help from David Kirk, a US Private National Tax Partner at EY. Below are some key insights from our conversation, with excerpts edited for clarity.
- Who were the major beneficiaries of TCJA tax changes?
Main takeaway: there is a misconception is that all high-income households benefited from TCJA. But region, occupation, and source of income meant tax changes were felt differently.
Top earners saw the individual income tax rate fall from 39.6% to 37%, but caps on state and local tax (SALT) deductions and non-deductible investment expenses may have offset lower federal rates for some people.
- Major beneficiaries: small business owners who use the 20% Qualified Business Income (QBI) 199(a) deduction to lower their tax rate further from 37% to 29.6% likely benefitted the most.
The lifetime exemption for estate and gift taxes was also meaningful. For example, a married couple could bequeath $25mn today with no tax liability. But waiting until 2026, when the TCJA estate tax provision is set to expire, could mean a $5mn tax liability.
- Â Minor beneficiaries: employees with high W-2 income paid lower federal taxes but, depending on region, saw lower SALT caps offset the benefit from lower rates.
- Non-beneficiaries: TCJA was largely neutral for investors with no ordinary income who pay long-term capital gains, since capital gains rates didn't change.
- Based on current candidate proposals, how could tax policy change?
Main takeaway: compromise will likely be required in every election outcome. And, with tax rates already near 100-year lows, rates are unlikely to fall further (Exhibit 3).
In a gridlock or divided government scenario where an extension isn't passed, the CBO estimates a $4.6tn tax increase over ten years, or approximately $460bn/year.
- Who's hardest hit if tax rates rise? The major beneficiaries (e.g., high income small business owners) who leverage the QBI deduction. Their tax rates could rise 33%, from 29.6% back to 39.6%.
- Where does the tax revenue come from? Â Although high-income households do have a lower propensity to spend, Mr. Kirk noted that higher taxes would probably prompt small business owners to respond with some combination of lower wages, lower capex, and slower hiring (Exhibit 4).
Changes in tax policies are not straightforward in a sweep scenario, either. Margins in Congress are expected to be narrow, which would require intra-party compromise.
- Where do you see areas of potential policy overlap?
Main takeaway: there will likely be concessions around the deficit and policies meant to mollify certain constituencies. Exhibit 5 shows the key proposals from each party.
Preserving provisions like larger standard deductions and child tax credits would not be important for households paying the most taxes but could be extended as part of a compromise package. Democrats have also said they don't want to raise taxes on people making less than $400k per year, a possible area of compromise with GOP leaders.
Provisions like the 199A QBI small business deduction might not be extended at current levels but could have a lower cap with more stringent income limits.
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- What about other provisions? Do you expect any changes to capital gains?
Main takeaway: changes to the capital gains look relatively unlikely. On the other hand, the 3.8% net investment income surtax could be expanded.
- Net investment income (NII): the current 3.8% NII tax, which was part of the Affordable Care Act, could be expanded as a 'pay-for'. This could be another area of natural compromise. Not much would change for investors with majority investment income who are already paying it. But transactions, such as the sale of a closely held business, could be newly required to pay.
- Capital gains: Vice President Harris has suggested a 28% capital gains tax, while also raising the NII to 5%, which could bring the top capital gains rate to 33%. But Mr. Kirk notes she was not specific on whether the 28% was inclusive of NII or not.
- Do you envision any changes to state & local tax (SALT) deductions?
Main takeaway: little to no change-it's too expensive to uncap the SALT deductions entirely. The cap could be raised from $10k to somewhere between $25-50k.
Higher SALT deductions could help high-income W-2 employees, but things become more complicated as earnings rise and as business interests are considered. IRS notice 2020-75 (the "workaround notice") allows passthrough entities to pay state income taxes at the business level but get state tax credits that offset state income tax liability at the owner level. This benefits small business owners but not W-2 employees and could be an area of scrutiny.
- What are some general ideas for tax mitigation strategies?
Main takeaway: consulting an expert for your unique situation is the best course of action.
- Tax-deferred accounts: if an investor has most of their money in IRAs or other tax-deferred vehicles, they'll probably just have to weather the storm and hope for the best. It's difficult to transfer money from these accounts in a tax-efficient way.
- Tax-advantaged charitable gifts: an investor could make gifts and donations now to avoid higher taxes later. But large gifts must be considered in relation to how they would affect current lifestyle choices.
- Spousal lifetime access trusts (SLATs): The TCJA doubled the estate tax exemption. If the provision expires, the exemption in 2026 will be about $14.3mn for married couples, compared to $28.6mn if the provision is extended.
One option to mitigate the liability could be to establish a SLAT where an investor can put assets (e.g., cash, marketable securities, real estate, etc.) into a trust and report it on their gift tax return. The SLAT gets assets out of the estate and uses their lifetime exemption, but spouses still have access to the funds if needed down the road. SLATs get complicated if the couple divorces. SLATs and other strategies require help from a qualified tax and/or legal professional.
- Â How much time do investors have to make changes in portfolios?
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 Five ways to boost tax efficiency
We see long-term value in simple, tax-aware investing advice. In the March RIC Report, we highlighted five examples for investors looking to make portfolios more tax efficient (for full details, see The RIC Report: Tax-efficient upgrades hiding in plain sight).
Any information relating to the tax status of financial instruments discussed herein is not intended to provide tax advice or to be used by anyone to provide tax advice. For more information see the appendix.
- Own tax-efficient wrappers: ETFs > mutual funds
For the same investment, taxable events mean mutual funds cost investors 1.3% per year vs. just 0.4% for ETFs. An investor who bought $100,000 of an S&P 500 ETF in October 2013 and held through today would have accumulated $359,000, compared to just $316,000 if the investment was in an S&P 500 mutual fund (Exhibit 8). We estimate that ETFs have helped save investors $250bn in taxes since 1993. See our primer Exchange Traded Funds: Primer: the relentless hunt for diversification for more.Â
- Maximize the power of compounding: stocks > bonds
>90% of fixed income total returns comes from coupon payments which can be taxable at the highest rates. Most equity payouts are qualified dividend income (QDI), with a max rate of 20%. Paying taxes on distributions every year blunts the magic of compounding Each year, Treasury gains lose 2.4% to taxes vs. 0.6% from stocks (Exhibit 9). Equities have outperformed bonds and cash by 6.7-8.5% a year, net of taxes, for nearly 50 years.
- Prioritize tax-advantaged yield: Prudent Yield > US Aggregate Bond Index
Fixed income investors have tax efficient options-our Prudent Yield strategy offers 5.7% tax-adjusted yield vs 3.5% for US Aggregate Bond benchmark.
- High yield municipal bonds (HYMB, HYD, FMHI) offer 6-7% tax-adjusted yields basis, 350bps more than the US aggregate bond index. Aggregate bond coupons are taxable at ordinary income rates. Returns have trailed HY munis by >220% since Dec 1995 (Exhibit 10). (see Own HY munis for more yield, less default).
- Preferred stock ETFs (PFFD, PFF, PFXF) pay some QDI. 63% of ETF holdings in our coverage are QDI eligible (see Initiating coverage of preferred stock ETFs).
- Opt for low-friction compounding: buybacks > dividends
Buybacks are more tax efficient than dividends. Even if dividends are qualified, payouts are taxed at the end of every year where they're received. An investor who pays taxes on reinvested dividends has less money to compound every year. The S&P 500 buyback factor has led dividend factors by 200-380bps per year since 1994 and has led the broad index by 2,500% and outperformance persists net of taxes (Exhibit 11 - see Exchange Traded Funds: Banking on buybacks).
Bonus: proactively seek tax efficiency in existing holdings
Investors should audit portfolios to understand where tax costs can be lowered. Many ETFs take advantage of QDI & return of capital for tax efficient distribution.
- MLPs (MLPX, MLPA) distributions are often treated as return of capital, making them tax-exempt in the year received.
- US sector funds (IYK, XLU) dividends could be 100% QDI. The same is true of broad equity funds that most already own like SPY or VOO.
- Closed end funds: muni funds (NMZ, MUA, MFM) payouts are tax-exempt and look attractive in a Fed cutting cycle. Tax-advantaged funds (AGD, ETG, GDV, HTD) are equity funds that offer 7% yields, sheltered by nearly 60% QDI on average (see Closed End Funds: Fed cuts & credit spreads say buy).
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 Dynamic Prudent Yield
The BofA Dynamic Prudent Yield strategy remains fully invested. This year on average Prudent Yield sector ETFs have outperformed the US Aggregate Bond Index by +3.4% and US Treasuries by +6.1% YTD and have an average 5.7% tax adjusted yield today.
For details on the Dynamic Prudent Yield Strategy including the full Appendix see: The RIC Report: A new bond strategy for the end of 60/40. Monthly updates can be received via email immediately after publishing by subscribing to "The ETF Angle". Full ETF coverage can be found on our Full ETF coverage can be found on our ETF Research Library.
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 ETF Valuation
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  Macro & Econ Highlights
Access China & Fed Cuts at a discount with LatAm stocks
Markets across Latin America trade over one standard deviation below historical valuation. Brazil, Chile, Mexico, and Colombia's stock indexes trade close to trough valuations, even with major catalysts. Dovish rate cuts in the United States and a stimulus package in China bode well for the commodity exposed countries (see report for stock screens). Valuations suggest that a soft-landing is well appreciated in US equities, it has yet to materially increase valuations in Latin America.
To capture this trend, ILF is our top-rated broad Latin America ETF. BofA Latin America investment strategists have also compiled a list of the top 10 Latin America ideas for this quarter.
China stimulus is a start, but not a salve
Up 30% since September 10th, China's easing measures and monetary stimulus have sparked investor demand, lifting emerging and developed economies alike. Our China Strategists are cautious: stimulus alone may not be enough to disabuse China from its own inertia. Sentiment may have improved, but sustained growth will require follow up measures and a shift in market incentives. According to Helen Qiao, market systems are the root of China's economic apathy, not necessarily a lack of liquidity or demand. Investors that are looking to tactically trade Chinese equities can refer to Winnie Wu's top picks across impacted sectors.
Portfolios may be more exposed to China than expected. US domiciled industrials and materials names also offer exposure to China. Andrew Obin points out that China represents 7% of sales in his industrials coverage on average. He identified four top picks for US based industrials that could benefit from a China rebound. Separately, Savita Subramanian has raised materials from marketweight to overweight on China exposure. Once a risk, China growth could now be a driver for US materials stocks.
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Don't lose focus: macro expectations are split
In last month's RIC report we highlighted that Savita Subramanian's regime indicator shifted to downturn (see Sector Focus Point), a signal to lower risk and move up in quality. This month, despite recent positive data prints, BofA's Industrial Momentum Indicator continued to pull back. The indicator usually leads industrial revisions and PMI. The indicator turned over in early spring and has precipitously fallen in recent months. At the same time, BofA's Global Earnings Revision ratio fell in September, treading only slightly above its all-time historical average. Michael Hartnett's Bull/Bear indicator is close to average, but he continues to emphasize the confluence of bubble conditions. Bulls could easily retreat as soon as recession or stagflationary signals emerge.
Meanwhile, Nigel Tupper's Market Trough Monitor suggests there's more to go. Four strategies experienced large moves versus history in the prior month, triggering a 'trough' signal. There have only been 13 previous trough signals since 1996 and the MSCI World Index averaged 28% in the subsequent 12 months, Typically, the trough signal is triggered following a selloff. That's not the case now but, between the China rally and broadening performance within and across regions, it does come at a period of some sizeable moves and market rotation.
Markets were offsides on oil in October
Earlier this month, Francisco Blanch highlighted the market's bleak view on oil fundamentals. Sentiment was clear: investors were shorting oil at levels not seen in the last decade. Bearish sentiment coalesced around concerns of a trade war, an OPEC price war, and signs of weak Chinese oil demand. Blanch warned, however, that risks are more balanced than investors are pricing in. Secular drivers include accelerating productivity, growth of artificial intelligence, and geopolitical risk.
He rightfully anticipated the imminent possibility of geopolitical risk driving oil prices and short squeezing bears. Michael Hartnett also identified commodities among key contrarian trades. Since October 1st, oil is up 6%. Investors can use ETFs to gain market access to commodities. Top fund strategies (outlined here) seek to maximize roll returns.
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At long last, Fed easing
Following a roaring 50bp start to the Fed's cutting cycle, our US economics team expects another 25bp rate cut in November. In their latest estimates, they lower their expectations for cuts given the strength of September's data. At the same time, BofA's FX, Rates, and Commodities team now expects the 10Y yield to end 2024 at 3.75%.
In equities, Savita Subramanian points out that 8 out of the 9 last easing cycles occurred when earnings were falling. Today, profits are accelerating, rendering "Fed cut playbooks" less useful. In equities, she highlights large cap value and cyclicals. In fixed income, BofA Fixed Income analysts highlight this month that rate cuts are supportive for high yield and loan fundamentals. In commodities, gold is usually inversely related to rates, but central bank buying remains as the main price driver. For more sector and asset specific views across asset classes, TJ Thornton recently published a compilation report with ideas from across the department.
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 Equity Highlights
The tale of two storms: Insurance stocks get choppy
Despite catastrophic losses in the southeast United States, Hurricane Helen should be a minor event for insurance names. This is partially due to the timing of the hurricane: payouts will not be completed in time for 3Q24 earnings. Large insurers like Progressive will begin reporting mid-October. In terms of severity, BofA analysts estimate this Hurricane Helen will cost insurers less than $10bn dollars. In context, Hurricane Michael cost insurers roughly $15bn, while Idalia was in the $2-4bn range. Finally, the majority of the damage from Helen is due to flooding, which is not covered by most private homeowners' insurance.
The impacts of Milton remain less known. Meteorologists predicted a strong US hurricane season, but investors positioned for only mild impacts. As a result, investors should anticipate near term price volatility. Josh Shanker sees price dips as opportunities to add exposure to reinsurers So far, insurance names have slightly underperformed the S&P 500, but upside risks remain going into earnings season.
Consumers hunt for value brought straight to their door
In the 2025 eCommerce survey, Justin Post finds that consumers are increasingly focused on value in response to a cooling economy and election headwinds. Consumables and online grocery are gaining traction in eCommerce as consumers are going bargain hunting. Overall, the big 5 retailers continue to gain share as delivery speed and customer experience improve.
While grocery and staples drive growth in eCommerce, hardline retail should get a lift from lower rates. Lower mortgages and auto loans could spill over into home improvement, furniture, and auto parts in the next 12 months. Robby Ohmes finds that hardlines outperform in the 12 months following the first rate cut.
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Remaining bullish on miners after strong 3Q24
BofA Metals and Mining analysts slightly adjusted their POs this month, marking to market after a strong 2Q for the industry. They remain bullish on copper, aluminum, gold, and silver given near term catalysts like China stimulus and rate cuts. In the long term, they still see a secular case for metals rooted in decarbonization and growth in India. Top picks can be found in the report "Growth has become a luxury itam".
In a review of 2Q, Lawson Winder notes that mid-tier gold miners outperformed in 3Q24. Gold is reached all-time highs, and silver is only slightly off of its 2024 peak, but miners have lagged the same performance on average. In the best cases, some miners are up >100% year to date, while underperforming names are down as much as -45%. Overall, they remain bullish.
Luxury retail could slow dramatically in '25
Profits are treading water for most S&P industries, but luxury stands apart from the rest. Ashley Wallace recently lowered her luxury goods EPS by -17%, 12% below consensus. In her view, cyclical and simultaneous weakness from the US, Europe, and China justifies this change. Data suggests that consumer behavior should continue to normalize into 2025. Her ratings now reflect a prolonged slowdown compared to what most analysts are anticipating.
Wallace expects 3Q revenue to be down -2% year over year, the weakest revenue growth since the pandemic. While the global slowdown will weigh on performance, she sees opportunity for brands to drive volumes and in-store traffic through creativity and novelty products, like the case in 2016. In her view, investors should look to defensive quality in the second half of the year, top picks can be found in the report.
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REITs are under-owned despite strong 2025 catalysts
Following the BofA Global Real Estate conference, Jeff Spector sees three near term catalysts that should support outperformance: 1.) Lower interest rates; 2.) A soft landing; and 3.) uncrowded positioning. In a comprehensive report, Spector compiles takeaways from a multitude of real estate sectors from private real estate to data centers.
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BofA Global Research house view
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    BofA US equity sector views
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   Global cross-asset returns
 September 2024 Review
- Global equity markets rose 3.9% on average in September, led by the Hang Seng (18.7%) and MSCI emerging markets (+6.7%). Chinese equites are now up 22% over the last 3 months, best of any region. Meanwhile, TOPIX lagged, only rising 0.6%.
- Mid-caps were the best performing size factor in September (+2.2%), outperforming small caps by 1.5%. Large cap value outperformed growth by 1.4%. Mid cap growth was the best performing factor overall, up +3.3%.
- Discretionary (+7.1%) and utilities (+6.6%) were top sectors this month. Utilities is now the best performing sector over the last 3 months. Defensive sectors underperformed cyclicals in a reversal from last month.
- All fixed income markets had positive returns for the third month in a row. Preferreds (+3.4%) had the best returns and are the top fixed income sector over the last 12 months (+19.8%).
- Gold continues to rise, up +5.3% this month and +42.6% over the last 12 months. Oil lost ~8% in September. Recent gains haven't offset losses from the last quarter.
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 Appendix
BofA Intangible Value Screen
The BofA Intangible Value Index screens the S&P 500 for stocks with the lowest quintile price to adjusted book value ratio where adjusted book value adds the following to tangible book value:
1. Reported intangible assets ex-goodwill;
2. Capitalized research & development expense: The initial R&D expense for stocks added to the index is grossed up and then depreciated using a 5% annual rate and increased in subsequent periods by R&D expense;
3. Organizational capital: 30% of SG&A expense depreciated at 20% per year.
A return on invested capital (ROIC) filter is then applied to the bottom quintile; the bottom third of stocks with the lowest average 20-quarter ROIC are removed.
The index calculation begins March 30, 2000 and is rebalanced quarterly without transaction cost estimates. This screen was launched September 8, 2020.
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BofA Efficient Growth Screen
The BofA Efficient Growth screen is created by weighting the results of each of two screens by 50%:
1. R&D Innovation (screen 1) uses the largest 3,000 publicly listed US stocks as a universe and regresses one-year lagged R&D, SG&A and Capex against revenue. Stocks are ranked by highest R&D coefficient and the top quintile are selected.
2. Capex Achievers (screen 2) uses the NASDAQ US Benchmark Index (NQUSB) as a universe and screens for companies that:
a. Have a minimum market capitalization of $200mm;
b. Have a minimum three-month average daily dollar trading volume of $500k;
c. Have at least three consecutive years of increasing annual capex expenditure;
d. Have an average ROIC greater than 10% over the trailing four years.
The Capex Achievers screen is rebalanced annually at the end of March using market data through the end of December.
The Efficient Growth screen calculation begins 12/31/2004 and does not include transaction cost estimates. This screen was launched September 8, 2020.
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Tax disclosure
Any information relating to the tax status of financial instruments discussed herein is not intended to provide tax advice or to be used by anyone to provide tax advice. Investors are urged to seek tax advice based on their particular circumstances from an independent tax professional.
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​I,Jared Woodard, hereby certify that the views expressed in this research report accurately reflect my personal views about the subject equity securities and issuers. I also certify that no part of my compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed in this research report.
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Special Disclosures
​BofA Securities is currently acting as Financial Advisor to Braemar Hotels & Resorts Inc. on potential Activism Defense.
​BofA Securities is currently acting as advisor to EQT AB in connection with its proposed acquisition of a stake in Acronis International GmbH, which was announced on August 7, 2024.
​BofA Securities is currently acting as financial advisor to SS&C Technologies Holdings Inc in connection with its proposed acquisition of Battea Class Action Services LLC, which was announced on September 12, 2024.
 Important Disclosures
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R1 Exchange-traded funds (ETFs), or the ETF providers, that were investment banking clients of BofA Securities or one of its affiliates within the past 12 months. For purposes of this Investment Rating Distribution, the coverage universe includes only ETFs. An ETF rated 1-FV is included as a Buy; an ETF rated 2-FV, 3-FV, 1-NV, 2-NV, 3-NV, 1-UF or 2-UF is included as a Hold; and an ETF rated 3-UF is included as a Sell.
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FUNDAMENTAL EQUITY OPINION KEY: Opinions include a Volatility Risk Rating, an Investment Rating and an Income Rating. VOLATILITY RISK RATINGS, indicators of potential price fluctuation, are: A - Low, B - Medium and C - High. INVESTMENT RATINGS reflect the analyst's assessment of both a stock's absolute total return potential as well as its attractiveness for investment relative to other stocks within its Coverage Cluster (defined below). Our investment ratings are: 1 - Buy stocks are expected to have a total return of at least 10% and are the most attractive stocks in the coverage cluster; 2 - Neutral stocks are expected to remain flat or increase in value and are less attractive than Buy rated stocks and 3 - Underperform stocks are the least attractive stocks in a coverage cluster. An investment rating of 6 (No Rating) indicates that a stock is no longer trading on the basis of fundamentals. Analysts assign investment ratings considering, among other things, the 0-12 month total return expectation for a stock and the firm's guidelines for ratings dispersions (shown in the table below). The current price objective for a stock should be referenced to better understand the total return expectation at any given time. The price objective reflects the analyst's view of the potential price appreciation (depreciation).
INCOME RATINGS, indicators of potential cash dividends, are: 7Â -Â same/higher (dividend considered to be secure), 8Â -Â same/lower (dividend not considered to be secure) and 9Â -Â pays no cash dividend. Coverage Cluster is comprised of stocks covered by a single analyst or two or more analysts sharing a common industry, sector, region or other classification(s). A stock's coverage cluster is included in the most recent BofA Global Research report referencing the stock.Â
EXCHANGE-TRADED FUNDS (ETF) INVESTMENT OPINION KEY: Opinions reflect both an Outlook Rating and a Category Rating. OUTLOOK RATINGS reflect the analyst's assessment of the ETF's attractiveness relative to other ETFs within its category (including sector, region, asset class, thematic, and others). There are three outlook ratings: 1 - the ETF is more attractive than covered peers in the same category over the next 12 months; 2 - the ETF is similarly attractive to covered peers in the same category over the next 12 months; and 3 - the ETF is less attractive than covered peers in the same category over the next 12 months. CATEGORY RATINGS, indicators of the analyst's view of the ETF's category and which incorporate published views of BofA Global Research department analysts, are: FV - Favorable view, NV - Neutral view and UF - Unfavorable view.
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Price Charts for the securities referenced in this research report are available on the Price Charts website, or call 1-800-MERRILL to have them mailed.
BofAS or one of its affiliates acts as a market maker for the equity securities recommended in the report: 1st Trust Financ ETF, 1st Trust Indus Fund, 1st Trust Mater ETF, 1st Trust Techn ETF, ALPS Disruptive Tech, Columbia EMxC ETF, Eng Transform500 ETF, First Trust Water, FirstTrust SmCap ETF, FlexShares Qual LC, Franklin Canada ETF, FT STX EUROPE ETF, Global X AI & Tech, Global X Uranium ETF, GlobalX MLP&Ener ETF, Hartford Dev Mkt ETF, Inv DWA EnrgMomentum, Inv KBW Prop&Cas ETF, Invesco A&D ETF, Invesco Biotech ETF, Invesco Cons ETF, Invesco DWA ETF, Invesco Dyn E&P ETF, Invesco Global Water, Invesco Intl Div, Invesco Int'lBuyback, Invesco Leis & Ent, Invesco Pharma ETF, Invesco S&P EWU ETF, Invesco Software, InvescoSP500 PureVal, iS Home Constr ETF, iShares ACWI ex US, iShares Banks ETF, iShares Canada ETF, iShares Chile ETF, iShares Cons Srv ETF, iShares Core S&P ETF, iShares Currency ETF, iShares Div&Buyback, iShares Edg MSCI ETF, iShares EM ex China, iShares EM Multi ETF, iShares Global Clean, iShares Gold Min ETF, iShares India 50 ETF, iShares JPX-NIKK ETF, iShares Material ETF, iShares Mexico ETF, iShares MSCI HK ETF, iShares S&P 100 ETF, iShares S&P 500 ETF, iShares S&P Mid ETF, iShares Tech-Sft ETF, iShares U.S. M D ETF, iShares US, iShares-DJ Telecom, iSharesESG MSCI EM, KraneS CHINA ETF, L Mason L Vol Hi Div, Mkt Jr Gold Mine ETF, Oil&Gas Exp ETF, Pacer US S Cap C Cow, Pacer USCashCows ETF, S&P Aero&Def ETF, Schwab Div ETF, Schwab L Cap Grw, Schwab US Large ETF, Schwab US MidCap ETF, Schwab US REIT ETF, SPDR Comm Serv ETF, SPDR Energy ETF, SPDR EuroStoxx50 ETF, SPDR Financ ETF, SPDR Healthca ETF, SPDR Industr ETF, SPDR O&G E&S ETF, SPDR REIT ETF, SPDR S&P Bank ETF, SPDR S&P H Care ETF, SPDR S&P Homebuilder, SPDR S&P Insur ETF, SPDR S&P Met&Min, SPDR S&P Retail ETF, SPDR Semicond ETF, SPDR Tech ETF, SPDR Utilities ETF, Tortoise NA pipe ETF, VanEck Biotech ETF, VanEck Oil Svcs ETF, VanEck Rare Mtls ETF, VanEck Urn+Nucl ETF, VanEck Vectors ETF, Vanguard Cons ETF, Vanguard Intl Div, Vanguard Value ETF, Vanguard World ex US, VE Vect Pharma ETF, VE Vect Semicond ETF, WSDTRE JPN Hdg ETF, WTree India Earnings, Xtrackers EM Hdg ETF.
BofAS or an affiliate was a manager of a public offering of securities of this issuer within the last 12 months: Ameriprise Inc., Charles Schwab, State Street.
The issuer is or was, within the last 12 months, an investment banking client of BofAS and/or one or more of its affiliates: Ameriprise Inc., BlackRock, Charles Schwab, Deutsche Bank, Franklin Resources, Invesco, Northern Trust Corpo, SS&C Technologies Ho, State Street, The Hartford, WisdomTree.
BofAS or an affiliate has received compensation from the issuer for non-investment banking services or products within the past 12 months: Ameriprise Inc., BlackRock, Charles Schwab, Deutsche Bank, Eng Transform500 ETF, Franklin Resources, Invesco, Krane Funds Advisors, Market Vectors Jr, Mirae Asset Global, MiraeAsset Sec, Northern Trust Corpo, Pacer Advisors, SS&C Technologies Ho, State Street, The Hartford, Vaneck, Vanguard Group Inc, WisdomTree.
The issuer is or was, within the last 12 months, a non-securities business client of BofAS and/or one or more of its affiliates: Ameriprise Inc., BlackRock, Charles Schwab, Deutsche Bank, Franklin Resources, Invesco, Krane Funds Advisors, Market Vectors Jr, Mirae Asset Global, MiraeAsset Sec, Northern Trust Corpo, Pacer Advisors, SS&C Technologies Ho, State Street, The Hartford, Vaneck, Vanguard Group Inc, WisdomTree.
BofAS or an affiliate has received compensation for investment banking services from this issuer within the past 12 months: Ameriprise Inc., BlackRock, Charles Schwab, Deutsche Bank, Franklin Resources, Invesco, SS&C Technologies Ho, State Street, The Hartford, WisdomTree.
BofAS or an affiliate expects to receive or intends to seek compensation for investment banking services from this issuer or an affiliate of the issuer within the next three months: Ameriprise Inc., BlackRock, Charles Schwab, Deutsche Bank, Franklin Resources, Invesco, Northern Trust Corpo, SS&C Technologies Ho, State Street, The Hartford, WisdomTree.
BofAS together with its affiliates beneficially owns one percent or more of the shares of this fund. If this report was issued on or after the 9th day of the month, it reflects the ownership position on the last day of the previous month. Reports issued before the 9th day of the month reflect the ownership position at the end of the second month preceding the date of the report: 1st Trust Financ ETF, 1st Trust Indus Fund, 1st Trust Mater ETF, 1st Trust Techn ETF, ALPS Disruptive Tech, Columbia EMxC ETF, Eng Transform500 ETF, First Trust Water, FirstTrust SmCap ETF, Franklin Canada ETF, FT STX EUROPE ETF, Global X AI & Tech, Global X Uranium ETF, GlobalX MLP&Ener ETF, Hartford Dev Mkt ETF, Inv DWA EnrgMomentum, Inv KBW Prop&Cas ETF, Invesco A&D ETF, Invesco Biotech ETF, Invesco Cons ETF, Invesco DWA ETF, Invesco Dyn E&P ETF, Invesco Global Water, Invesco Intl Div, Invesco Int'lBuyback, Invesco Leis & Ent, Invesco Pharma ETF, Invesco S&P EWU ETF, Invesco Software, InvescoSP500 PureVal, iS Home Constr ETF, iShares ACWI ex US, iShares Banks ETF, iShares Canada ETF, iShares Cons Srv ETF, iShares Core S&P ETF, iShares Currency ETF, iShares Div&Buyback, iShares Edg MSCI ETF, iShares EM ex China, iShares Global Clean, iShares Gold Min ETF, iShares JPX-NIKK ETF, iShares Material ETF, iShares Mexico ETF, iShares S&P 100 ETF, iShares S&P 500 ETF, iShares S&P Mid ETF, iShares Tech-Sft ETF, iShares U.S. M D ETF, iShares US, iShares-DJ Telecom, iSharesESG MSCI EM, L Mason L Vol Hi Div, Oil&Gas Exp ETF, Pacer US S Cap C Cow, Pacer USCashCows ETF, S&P Aero&Def ETF, Schwab Div ETF, SPDR Comm Serv ETF, SPDR Energy ETF, SPDR EuroStoxx50 ETF, SPDR Financ ETF, SPDR Healthca ETF, SPDR Industr ETF, SPDR O&G E&S ETF, SPDR REIT ETF, SPDR S&P Bank ETF, SPDR S&P H Care ETF, SPDR S&P Homebuilder, SPDR S&P Insur ETF, SPDR S&P Met&Min, SPDR S&P Retail ETF, SPDR Semicond ETF, SPDR Tech ETF, SPDR Utilities ETF, Tortoise NA pipe ETF, VanEck Biotech ETF, VanEck Oil Svcs ETF, VanEck Rare Mtls ETF, VanEck Urn+Nucl ETF, Vanguard Cons ETF, Vanguard Intl Div, Vanguard Value ETF, Vanguard World ex US, VE Vect Pharma ETF, VE Vect Semicond ETF, WSDTRE JPN Hdg ETF, WTree India Earnings, Xtrackers EM Hdg ETF.
BofAS or one of its affiliates is willing to sell to, or buy from, clients the common equity of the issuer on a principal basis: 1st Trust Financ ETF, 1st Trust Indus Fund, 1st Trust Mater ETF, 1st Trust Techn ETF, ALPS Disruptive Tech, Columbia EMxC ETF, Eng Transform500 ETF, First Trust Water, FirstTrust SmCap ETF, FlexShares Qual LC, Franklin Canada ETF, FT STX EUROPE ETF, Global X AI & Tech, Global X Uranium ETF, GlobalX MLP&Ener ETF, Hartford Dev Mkt ETF, Inv DWA EnrgMomentum, Inv KBW Prop&Cas ETF, Invesco A&D ETF, Invesco Biotech ETF, Invesco Cons ETF, Invesco DWA ETF, Invesco Dyn E&P ETF, Invesco Global Water, Invesco Intl Div, Invesco Int'lBuyback, Invesco Leis & Ent, Invesco Pharma ETF, Invesco S&P EWU ETF, Invesco Software, InvescoSP500 PureVal, iS Home Constr ETF, iShares ACWI ex US, iShares Banks ETF, iShares Canada ETF, iShares Chile ETF, iShares Cons Srv ETF, iShares Core S&P ETF, iShares Currency ETF, iShares Div&Buyback, iShares Edg MSCI ETF, iShares EM ex China, iShares EM Multi ETF, iShares Global Clean, iShares Gold Min ETF, iShares India 50 ETF, iShares JPX-NIKK ETF, iShares Material ETF, iShares Mexico ETF, iShares MSCI HK ETF, iShares S&P 100 ETF, iShares S&P 500 ETF, iShares S&P Mid ETF, iShares Tech-Sft ETF, iShares U.S. M D ETF, iShares US, iShares-DJ Telecom, iSharesESG MSCI EM, KraneS CHINA ETF, L Mason L Vol Hi Div, Mkt Jr Gold Mine ETF, Oil&Gas Exp ETF, Pacer US S Cap C Cow, Pacer USCashCows ETF, S&P Aero&Def ETF, Schwab Div ETF, Schwab L Cap Grw, Schwab US Large ETF, Schwab US MidCap ETF, Schwab US REIT ETF, SPDR Comm Serv ETF, SPDR Energy ETF, SPDR EuroStoxx50 ETF, SPDR Financ ETF, SPDR Healthca ETF, SPDR Industr ETF, SPDR O&G E&S ETF, SPDR REIT ETF, SPDR S&P Bank ETF, SPDR S&P H Care ETF, SPDR S&P Homebuilder, SPDR S&P Insur ETF, SPDR S&P Met&Min, SPDR S&P Retail ETF, SPDR Semicond ETF, SPDR Tech ETF, SPDR Utilities ETF, Tortoise NA pipe ETF, VanEck Biotech ETF, VanEck Oil Svcs ETF, VanEck Rare Mtls ETF, VanEck Urn+Nucl ETF, VanEck Vectors ETF, Vanguard Cons ETF, Vanguard Intl Div, Vanguard Value ETF, Vanguard World ex US, VE Vect Pharma ETF, VE Vect Semicond ETF, WSDTRE JPN Hdg ETF, WTree India Earnings, Xtrackers EM Hdg ETF.
The issuer is or was, within the last 12 months, a securities business client (non-investment banking) of BofAS and/or one or more of its affiliates: Ameriprise Inc., BlackRock, Charles Schwab, Deutsche Bank, Eng Transform500 ETF, Franklin Resources, Invesco, Krane Funds Advisors, Market Vectors Jr, Mirae Asset Global, MiraeAsset Sec, Northern Trust Corpo, Pacer Advisors, SS&C Technologies Ho, State Street, The Hartford, Vaneck, Vanguard Group Inc, WisdomTree.
Due to the nature of strategic analysis, the issuers or securities recommended or discussed in this report are not continuously followed. Accordingly, investors must regard this report as providing stand-alone analysis and should not expect continuing analysis or additional reports relating to such issuers and/or securities.
BofA Global Research personnel (including the analyst(s) responsible for this report) receive compensation based upon, among other factors, the overall profitability of Bank of America Corporation, including profits derived from investment banking. The analyst(s) responsible for this report may also receive compensation based upon, among other factors, the overall profitability of the Bank's sales and trading businesses relating to the class of securities or financial instruments for which such analyst is responsible.
BofAS and/or its affiliates participate in the creation and redemption of these ETFs and are an authorized participant for such ETFs: 1st Trust Financ ETF, 1st Trust Indus Fund, 1st Trust Mater ETF, 1st Trust Techn ETF, Eng Transform500 ETF, First Trust Water, FirstTrust SmCap ETF, FlexShares Qual LC, FT STX EUROPE ETF, Global X AI & Tech, Global X Uranium ETF, GlobalX MLP&Ener ETF, Hartford Dev Mkt ETF, Inv DWA EnrgMomentum, Inv KBW Prop&Cas ETF, Invesco A&D ETF, Invesco Biotech ETF, Invesco Cons ETF, Invesco DWA ETF, Invesco Dyn E&P ETF, Invesco Global Water, Invesco Intl Div, Invesco Int'lBuyback, Invesco Leis & Ent, Invesco Pharma ETF, Invesco S&P EWU ETF, InvescoSP500 PureVal, iS Home Constr ETF, iShares ACWI ex US, iShares Banks ETF, iShares Canada ETF, iShares Chile ETF, iShares Cons Srv ETF, iShares Core S&P ETF, iShares Currency ETF, iShares Div&Buyback, iShares Edg MSCI ETF, iShares EM ex China, iShares EM Multi ETF, iShares Global Clean, iShares Gold Min ETF, iShares India 50 ETF, iShares JPX-NIKK ETF, iShares Material ETF, iShares Mexico ETF, iShares MSCI HK ETF, iShares S&P 100 ETF, iShares S&P 500 ETF, iShares S&P Mid ETF, iShares Tech-Sft ETF, iShares U.S. M D ETF, iShares US, iShares-DJ Telecom, iSharesESG MSCI EM, KraneS CHINA ETF, L Mason L Vol Hi Div, Mkt Jr Gold Mine ETF, Oil&Gas Exp ETF, Pacer US S Cap C Cow, Pacer USCashCows ETF, S&P Aero&Def ETF, Schwab Div ETF, Schwab L Cap Grw, Schwab US Large ETF, Schwab US MidCap ETF, Schwab US REIT ETF, SPDR Comm Serv ETF, SPDR Energy ETF, SPDR EuroStoxx50 ETF, SPDR Financ ETF, SPDR Healthca ETF, SPDR Industr ETF, SPDR O&G E&S ETF, SPDR REIT ETF, SPDR S&P Bank ETF, SPDR S&P H Care ETF, SPDR S&P Homebuilder, SPDR S&P Insur ETF, SPDR S&P Met&Min, SPDR S&P Retail ETF, SPDR Semicond ETF, SPDR Tech ETF, SPDR Utilities ETF, VanEck Biotech ETF, VanEck Oil Svcs ETF, VanEck Rare Mtls ETF, VanEck Urn+Nucl ETF, Vanguard Cons ETF, Vanguard Intl Div, Vanguard Value ETF, Vanguard World ex US, VE Vect Pharma ETF, VE Vect Semicond ETF, WSDTRE JPN Hdg ETF, WTree India Earnings, Xtrackers EM Hdg ETF
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Other Important Disclosures
The covered issuer and/or one or more of its affiliates holds 5% or more of the total issued share capital of Bank of America Corporation: BlackRock, Vanguard Group Inc.
Prices are indicative and for information purposes only. Except as otherwise stated in the report, for any recommendation in relation to an equity security, the price referenced is the publicly traded price of the security as of close of business on the day prior to the date of the report or, if the report is published during intraday trading, the price referenced is indicative of the traded price as of the date and time of the report and in relation to a debt security (including equity preferred and CDS), prices are indicative as of the date and time of the report and are from various sources including BofA Securities trading desks.
The date and time of completion of the production of any recommendation in this report shall be the date and time of dissemination of this report as recorded in the report timestamp.
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One or more analysts responsible for covering the funds in this report own(s) a position in a company that constitutes a significant portion of the assets of the subject fund: URA
​This report may refer to fixed income securities or other financial instruments that may not be offered or sold in one or more states or jurisdictions, or to certain categories of investors, including retail investors. Readers of this report are advised that any discussion, recommendation or other mention of such instruments is not a solicitation or offer to transact in such instruments. Investors should contact their BofA Securities representative or Merrill Global Wealth Management financial advisor for information relating to such instruments.
Recipients who are not institutional investors or market professionals should seek the advice of their independent financial advisor before considering information in this report in connection with any investment decision, or for a necessary explanation of its contents.
Officers of BofAS or one or more of its affiliates (other than research analysts) may have a financial interest in securities of the issuer(s) or in related investments.
Refer to BofA Global Research policies relating to conflicts of interest.
"BofA Securities" includes BofA Securities, Inc. ("BofAS") and its affiliates. Investors should contact their BofA Securities representative or Merrill Global Wealth Management financial advisor if they have questions concerning this report or concerning the appropriateness of any investment idea described herein for such investor. "BofA Securities" is a global brand for BofA Global Research.
Information relating to Non-US affiliates of BofA Securities and Distribution of Affiliate Research Reports:
​​BofAS and/or Merrill Lynch, Pierce, Fenner & Smith Incorporated ("MLPF&S") may in the future distribute, information of the following non-US affiliates in the US (short name: legal name, regulator): Merrill Lynch (South Africa): Merrill Lynch South Africa (Pty) Ltd., regulated by The Financial Service Board; MLI (UK): Merrill Lynch International, regulated by the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA); BofASE (France): BofA Securities Europe SA is authorized by the Autorité de Contrôle Prudentiel et de Résolution (ACPR) and regulated by the ACPR and the Autorité des Marchés Financiers (AMF). BofA Securities Europe SA ("BofASE") with registered address at 51, rue La Boétie, 75008 Paris is registered under no 842 602 690 RCS Paris. In accordance with the provisions of French Code Monétaire et Financier (Monetary and Financial Code), BofASE is an établissement de crédit et d'investissement (credit and investment institution) that is authorised and supervised by the European Central Bank and the Autorité de Contrôle Prudentiel et de Résolution (ACPR) and regulated by the ACPR and the Autorité des Marchés Financiers. BofASE's share capital can be found at www.bofaml.com/BofASEdisclaimer; BofA Europe (Milan): Bank of America Europe Designated Activity Company, Milan Branch, regulated by the Bank of Italy, the European Central Bank (ECB) and the Central Bank of Ireland (CBI); BofA Europe (Frankfurt): Bank of America Europe Designated Activity Company, Frankfurt Branch regulated by BaFin, the ECB and the CBI; BofA Europe (Madrid): Bank of America Europe Designated Activity Company, Sucursal en España, regulated by the Bank of Spain, the ECB and the CBI; Merrill Lynch (Australia): Merrill Lynch Equities (Australia) Limited, regulated by the Australian Securities and Investments Commission; Merrill Lynch (Hong Kong): Merrill Lynch (Asia Pacific) Limited, regulated by the Hong Kong Securities and Futures Commission (HKSFC); Merrill Lynch (Singapore): Merrill Lynch (Singapore) Pte Ltd, regulated by the Monetary Authority of Singapore (MAS); Merrill Lynch (Canada): Merrill Lynch Canada Inc, regulated by the Canadian Investment Regulatory Organization; Merrill Lynch (Mexico): Merrill Lynch Mexico, SA de CV, Casa de Bolsa, regulated by the Comisión Nacional Bancaria y de Valores; BofAS Japan: BofA Securities Japan Co., Ltd., regulated by the Financial Services Agency; Merrill Lynch (Seoul): Merrill Lynch International, LLC Seoul Branch, regulated by the Financial Supervisory Service; Merrill Lynch (Taiwan): Merrill Lynch Securities (Taiwan) Ltd., regulated by the Securities and Futures Bureau; BofAS India: BofA Securities India Limited, regulated by the Securities and Exchange Board of India (SEBI); Merrill Lynch (Israel): Merrill Lynch Israel Limited, regulated by Israel Securities Authority; Merrill Lynch (DIFC): Merrill Lynch International (DIFC Branch), regulated by the Dubai Financial Services Authority (DFSA); Merrill Lynch (Brazil): Merrill Lynch S.A. Corretora de TÃtulos e Valores Mobiliários, regulated by Comissão de Valores Mobiliários; Merrill Lynch KSA Company: Merrill Lynch Kingdom of Saudi Arabia Company, regulated by the Capital Market Authority.​
This information: has been approved for publication and is distributed in the United Kingdom (UK) to professional clients and eligible counterparties (as each is defined in the rules of the FCA and the PRA) by MLI (UK), which is authorized by the PRA and regulated by the FCA and the PRA - details about the extent of our regulation by the FCA and PRA are available from us on request; has been approved for publication and is distributed in the European Economic Area (EEA) by BofASE (France), which is authorized by the ACPR and regulated by the ACPR and the AMF; has been considered and distributed in Japan by BofAS Japan, a registered securities dealer under the Financial Instruments and Exchange Act in Japan, or its permitted affiliates; is issued and distributed in Hong Kong by Merrill Lynch (Hong Kong) which is regulated by HKSFC; is issued and distributed in Taiwan by Merrill Lynch (Taiwan); is issued and distributed in India by BofAS India; and is issued and distributed in Singapore to institutional investors and/or accredited investors (each as defined under the Financial Advisers Regulations) by Merrill Lynch (Singapore) (Company Registration No 198602883D). Merrill Lynch (Singapore) is regulated by MAS. Merrill Lynch Equities (Australia) Limited (ABN 65 006 276 795), AFS License 235132 (MLEA) distributes this information in Australia only to 'Wholesale' clients as defined by s.761G of the Corporations Act 2001. With the exception of Bank of America N.A., Australia Branch, neither MLEA nor any of its affiliates involved in preparing this information is an Authorised Deposit-Taking Institution under the Banking Act 1959 nor regulated by the Australian Prudential Regulation Authority. No approval is required for publication or distribution of this information in Brazil and its local distribution is by Merrill Lynch (Brazil) in accordance with applicable regulations. Merrill Lynch (DIFC) is authorized and regulated by the DFSA. Information prepared and issued by Merrill Lynch (DIFC) is done so in accordance with the requirements of the DFSA conduct of business rules. BofA Europe (Frankfurt) distributes this information in Germany and is regulated by BaFin, the ECB and the CBI. BofA Securities entities, including BofA Europe and BofASE (France), may outsource/delegate the marketing and/or provision of certain research services or aspects of research services to other branches or members of the BofA Securities group. You may be contacted by a different BofA Securities entity acting for and on behalf of your service provider where permitted by applicable law. This does not change your service provider. Please refer to the Electronic Communications Disclaimers for further information.
​This information has been prepared and issued by BofAS and/or one or more of its non-US affiliates. The author(s) of this information may not be licensed to carry on regulated activities in your jurisdiction and, if not licensed, do not hold themselves out as being able to do so. BofAS and/or MLPF&S is the distributor of this information in the US and accepts full responsibility for information distributed to BofAS and/or MLPF&S clients in the US by its non-US affiliates. Any US person receiving this information and wishing to effect any transaction in any security discussed herein should do so through BofAS and/or MLPF&S and not such foreign affiliates. Hong Kong recipients of this information should contact Merrill Lynch (Asia Pacific) Limited in respect of any matters relating to dealing in securities or provision of specific advice on securities or any other matters arising from, or in connection with, this information. Singapore recipients of this information should contact Merrill Lynch (Singapore) Pte Ltd in respect of any matters arising from, or in connection with, this information. For clients that are not accredited investors, expert investors or institutional investors Merrill Lynch (Singapore) Pte Ltd accepts full responsibility for the contents of this information distributed to such clients in Singapore.
General Investment Related Disclosures:
Taiwan Readers: Neither the information nor any opinion expressed herein constitutes an offer or a solicitation of an offer to transact in any securities or other financial instrument. No part of this report may be used or reproduced or quoted in any manner whatsoever in Taiwan by the press or any other person without the express written consent of BofA Securities.
This document provides general information only, and has been prepared for, and is intended for general distribution to, BofA Securities clients. Neither the information nor any opinion expressed constitutes an offer or an invitation to make an offer, to buy or sell any securities or other financial instrument or any derivative related to such securities or instruments (e.g., options, futures, warrants, and contracts for differences). This document is not intended to provide personal investment advice and it does not take into account the specific investment objectives, financial situation and the particular needs of, and is not directed to, any specific person(s). This document and its content do not constitute, and should not be considered to constitute, investment advice for purposes of ERISA, the US tax code, the Investment Advisers Act or otherwise. Investors should seek financial advice regarding the appropriateness of investing in financial instruments and implementing investment strategies discussed or recommended in this document and should understand that statements regarding future prospects may not be realized. Any decision to purchase or subscribe for securities in any offering must be based solely on existing public information on such security or the information in the prospectus or other offering document issued in connection with such offering, and not on this document.
Securities and other financial instruments referred to herein, or recommended, offered or sold by BofA Securities, are not insured by the Federal Deposit Insurance Corporation and are not deposits or other obligations of any insured depository institution (including, Bank of America, N.A.). Investments in general and, derivatives, in particular, involve numerous risks, including, among others, market risk, counterparty default risk and liquidity risk. No security, financial instrument or derivative is suitable for all investors. Digital assets are extremely speculative, volatile and are largely unregulated. In some cases, securities and other financial instruments may be difficult to value or sell and reliable information about the value or risks related to the security or financial instrument may be difficult to obtain. Investors should note that income from such securities and other financial instruments, if any, may fluctuate and that price or value of such securities and instruments may rise or fall and, in some cases, investors may lose their entire principal investment. Past performance is not necessarily a guide to future performance. Levels and basis for taxation may change.
This report may contain a short-term trading idea or recommendation, which highlights a specific near-term catalyst or event impacting the issuer or the market that is anticipated to have a short-term price impact on the equity securities of the issuer. Short-term trading ideas and recommendations are different from and do not affect a stock's fundamental equity rating, which reflects both a longer term total return expectation and attractiveness for investment relative to other stocks within its Coverage Cluster. Short-term trading ideas and recommendations may be more or less positive than a stock's fundamental equity rating.
BofA Securities is aware that the implementation of the ideas expressed in this report may depend upon an investor's ability to "short" securities or other financial instruments and that such action may be limited by regulations prohibiting or restricting "shortselling" in many jurisdictions. Investors are urged to seek advice regarding the applicability of such regulations prior to executing any short idea contained in this report.
Foreign currency rates of exchange may adversely affect the value, price or income of any security or financial instrument mentioned herein. Investors in such securities and instruments, including ADRs, effectively assume currency risk.
BofAS or one of its affiliates is a regular issuer of traded financial instruments linked to securities that may have been recommended in this report. BofAS or one of its affiliates may, at any time, hold a trading position (long or short) in the securities and financial instruments discussed in this report.
BofA Securities, through business units other than BofA Global Research, may have issued and may in the future issue trading ideas or recommendations that are inconsistent with, and reach different conclusions from, the information presented herein. Such ideas or recommendations may reflect different time frames, assumptions, views and analytical methods of the persons who prepared them, and BofA Securities is under no obligation to ensure that such other trading ideas or recommendations are brought to the attention of any recipient of this information.
In the event that the recipient received this information pursuant to a contract between the recipient and BofAS for the provision of research services for a separate fee, and in connection therewith BofAS may be deemed to be acting as an investment adviser, such status relates, if at all, solely to the person with whom BofAS has contracted directly and does not extend beyond the delivery of this report (unless otherwise agreed specifically in writing by BofAS). If such recipient uses the services of BofAS in connection with the sale or purchase of a security referred to herein, BofAS may act as principal for its own account or as agent for another person. BofAS is and continues to act solely as a broker-dealer in connection with the execution of any transactions, including transactions in any securities referred to herein.
ETFs are redeemable only in Creation Unit size through an Authorized Participant and may not be individually redeemed. ETFs also are redeemable on an "in-kind" basis. The mechanism for creation and redemption of ETFs may be disrupted due to market conditions or otherwise.
The public trading price of an ETF may be different from its net asset value, and an ETF could trade at a premium or discount to its net asset value.
Investors in ETFs with international securities assume currency risk.
U.S. exchange-listed, open-end ETFs must be offered under and sold only pursuant to a prospectus. U.S. exchange-listed ETFs may not be marketed or sold in a number of non-U.S. jurisdictions and may not be suitable for all investors. Investors should consider the investment objectives, risks, charges and expenses of the ETF carefully before investing. The prospectus for the ETF contains this and other information about the ETF. Clients may obtain prospectuses for the ETFs mentioned in this report from the ETF distributor or their Merrill Global Wealth Management financial advisor. The prospectuses contain more complete and important information about the ETFs mentioned in this report and should be read carefully before investing.
"Standard & Poor's®", "S&P®", "S&P 500®", "Standard & Poor's 500", "500", "Standard & Poor's Depositary Receipts®", "SPDRs®", "Select Sector SPDR" and "Select Sector Standard & Poor's Depositary Receipts" are trademarks of The McGraw-Hill Companies, Inc. and have been licensed for use in connection with the listing and trading of Select Sector SPDRs on the AMEX. The stocks included in each Select Sector Index (upon which the Select Sector SPDRs are based) were selected by the index compilation agent in consultation with S&P from the universe of companies represented by the S&P 500 Index. The composition and weightings of the stocks included in each Select Sector Index can be expected to differ from the composition and weighting of stock included in any similar S&P 500 sector index that is published and disseminated by S&P.
For clients in Wealth Management, to the extent that the securities referenced in this report are ETFs or CEFs, investors should note that (1) the views and ratings presented by BofA Global Research personnel may vary from those of other business units of BofA Securities. including the Due Diligence group within the Chief Investment Office of MLPF&S ("CIO Due Diligence"); and (2) the CIO Due Diligence review process is used to determine the availability of an ETF or CEF for purchase through the Wealth Management division of MLPF&S and its affiliates.
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Research AnalystsResearch Investment Committee  Jared Woodard Investment & ETF Strategist BofAS  John Glascock Investment & ETF Strategist BofAS  Phoebe Block Investment & ETF Strategist BofAS  Derek Harris Portfolio Strategist BofAS  Chris Flanagan FI/MBS/CLO Strategist BofAS  Global Economics & Strategy Michael Hartnett Investment Strategist BofAS  Michael Feniger Research Analyst BofAS  Claudio Irigoyen Global Economist BofAS  Thomas (T.J.) Thornton Head of Research Marketing BofAS  Francisco Blanch Commodity & Deriv Strategist BofA Europe (Madrid)  Neha Khoda Credit Strategist BofAS  Masashi Akutsu >> Strategist BofAS Japan  Jill Carey Hall, CFA Equity & Quant Strategist BofAS  Nigel Tupper >> Quant Strategist Merrill Lynch (Australia)  Pratik K. Gupta CLO/MBS Strategist BofAS  Savita Subramanian Equity & Quant Strategist BofAS  Equity Research Andrew Obin Research Analyst BofAS  Alexander Virgo >> Research Analyst MLI (UK)  Lawson Winder, CFA >> Research Analyst Merrill Lynch (Canada)  Joshua Shanker Research Analyst BofAS  Justin Post Research Analyst BofAS  Robert F. Ohmes, CFA Research Analyst BofAS  Ashley Wallace >> Research Analyst MLI (UK)  Jeffrey Spector Research Analyst BofAS  Trading ideas and investment strategies discussed herein may give rise to significant risk and are not suitable for all investors. Investors should have experience in relevant markets and the financial resources to absorb any losses arising from applying these ideas or strategies. Refer to "Other Important Disclosures" for information on certain BofA Securities entities that take responsibility for the information herein in particular jurisdictions. |
| Timestamp: 15 October 2024 05:39AM EDT |
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