According to Bank of America Merrill Lynch, repurchases are up 91% year-over-year, with staples and materials leading the charge followed by tech and financials. Over the past week, there was nearly $2.8 billion in deals, the fourth-highest level since BofAML began tracking the data point in 2009.

Technology and consumer discretionary stocks combine for 45% of PKW’s weight. Financials and industrials combine for more than 31%.

“Companies are more likely to ramp up their buyback programs when they are flush with cash, not necessarily in the depths of a bear market when their share prices are most depressed,” said Morningstar. “Consequently, a company’s decision to institute a repurchase program does not necessarily mean that its stock is undervalued. Rather, managers typically use repurchases to return excess cash to shareholders when they do not have more-attractive investment opportunities, similar to a dividend.”

Morningstar has a Neutral rating on PKW.

For more information on the buybacks strategy, visit our buybacks category.