CHICAGO, Nov. 18, 2020 /PRNewswire/ — Morningstar, Inc. (Nasdaq: MORN), a leading provider of independent investment research, today reported estimated U.S. mutual fund and exchange-traded fund (ETF) flows for October 2020. In the lead up to November’s elections, long-term mutual funds and ETFs collected $13 billion in October—on par with inflows from September and marking the seventh consecutive month of inflows. In contrast, money market funds saw outflows of nearly $50 billion, marking the fifth consecutive month of outflows from those funds.
Morningstar’s report about U.S. fund flows for October 2020 is available here. Highlights from the report include:
- U.S. equity fund outflows more than doubled from September to $46 billion, the second-highest monthly outflows on record. About $35 billion of these outflows came from actively managed funds while passively managed funds saw $11 billion exit. International equity funds posted outflows for the ninth month in a row, with $1.8 billion leaving in October and total outflows from the group amounting to $6 billion since August.
- Taxable-bond funds led all category groups in October with $62 billion in inflows, with total inflows of $316 billion for the year to date. While many investors moved towards moderate risk categories such as intermediate-core bond, others put money into short-term and ultrashort bond funds, suggesting a conservative stance in the face of economic and political uncertainty as well as rock-bottom interest rates. Collectively, short-term and ultrashort bond funds took in nearly $19 billion during the month.
- Municipal-bond funds also gathered $6 billion in October, and investors targeted strategies that are thought to offer lower issuer and interest-rate risk. Of these inflows, $3.9 billion went to muni national short funds, which typically spread assets across various municipal issuers and sport modest durations.
- Vanguard continues to lead among fund families, collecting $12.8 billion in inflows in October, while iShares closely followed with inflows of $9.5 billion. IShares’ taxable-bond funds drove much of the firm’s increase, collecting $7 billion for the month. Meanwhile, SPDR State Street topped the list of firms seeing outflows at $7 billion, while Invesco saw outflows of $5.3 billion, with investors pulling roughly equal amounts from its active and passive funds.
To view the complete report, please click here.
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About Morningstar, Inc.
Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The Company offers an extensive line of products and services for individual investors, financial advisors, asset managers, retirement plan providers and sponsors, and institutional investors in the debt and private capital markets. Morningstar provides data and research insights on a wide range of investment offerings, including managed investment products, publicly listed companies, private capital markets, debt securities, and real-time global market data. Morningstar also offers investment management services through its investment advisory subsidiaries, with approximately $215 billion in assets under advisement and management as of Sept. 30, 2020. The Company has operations in 29 countries. For more information, visit www.morningstar.com/company. Follow Morningstar on Twitter @MorningstarInc.
Morningstar’s Manager Research Group consists of various wholly owned subsidiaries of Morningstar, Inc. including, but not limited to, Morningstar Research Services LLC. Analyst Ratings are subjective in nature and should not be used as the sole basis for investment decisions. Analyst Ratings are based on Morningstar’s Manager Research Group’s current expectations about future events and therefore involve unknown risks and uncertainties that may cause such expectations not to occur or to differ significantly from what was expected. Analyst Ratings are not guarantees nor should they be viewed as an assessment of a fund’s or a fund’s or separately managed account’s underlying securities’ creditworthiness. This press release is for informational purposes only; references to securities or a separately managed account investment strategy in this press release should not be considered an offer or solicitation to buy or sell the securities or to invest in accordance with that strategy.
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SOURCE Morningstar, Inc.