Morningstar Reports U.S. Mutual Fund and ETF Asset Flows for July 2017

August 21, 2017

CHICAGO, Aug. 21, 2017 /PRNewswire/ -- Morningstar, Inc. (NASDAQ: MORN), a leading provider of independent investment research, today reported estimated U.S. mutual fund and exchange-traded fund (ETF) asset flows for July 2017. In July, investors put $10.8 billion into U.S. equity passive funds, up from $9.3 billion in June 2017. On the active front, investors pulled $19.6 billion out of U.S. equity funds, compared with $14.6 billion in the previous month. Morningstar estimates net flow for mutual funds by computing the change in assets not explained by the performance of the fund and net flow for ETFs by computing the change in shares outstanding.

Morningstar's report about U.S. asset flows in July is available here. Highlights from the report include:

  • Taxable-bond and international equity category groups had inflows of $34.7 billion and $23.0 billion, respectively, the majority of which came from passive funds. In its July World Economic Outlook Update, the International Monetary Fund reduced the U.S. GDP growth forecast for 2017 to 2.1 percent from 2.3 percent, while raising Europe's expected growth rate to 1.9 percent from 1.7 percent, adjusting growth expectations among investors.
  • In a pattern reversal, alternative and commodities funds suffered outflows from passive and inflows to active in July.
  • The four Morningstar Categories with the highest inflows in July are consistent with the previous month: foreign large blend, intermediate-term bond, large blend, and diversified emerging markets, anticipating stronger growth potential after the MSCI Emerging Markets Index returned 25.5 percent year to date.
  • Among top U.S. fund families, PIMCO was the leader in active flows with $2.5 billion, followed by Vanguard with $1.5 billion. On the passive front, Vanguard was the top fund family, with inflows of $20.1 billion, closely followed by BlackRock/iShares with inflows of $14.5 billion.
  • Top active funds in July include PIMCO Income, which has a Morningstar Analyst Rating™ of Silver, with flows of $2.7 billion, followed by Gold-rated Oakmark International with $1.2 billion in flows. The passive funds with the highest inflows were Gold-rated Vanguard Total Stock Market Index Fund and iShares Core S&P 500 ETF, which saw respective inflows of $4.6 billion and $4.1 billion.
  • Silver-rated Fidelity Contrafund had the highest outflows for active funds at $1.4 billion, while on the passive front, Gold-rated Vanguard Institutional Index Fund saw outflows of $4.0 billion.

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 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, and real-time global market data. Morningstar also offers investment management services through its investment advisory subsidiaries, with more than $200 billion in assets under advisement and management as of June 30, 2017. The company has operations in 27 countries.

Morningstar's Manager Research Group consists of various wholly owned subsidiaries of Morningstar, Inc. including, but not limited to, Morningstar Research Services LLC. Morningstar's Manager Research Group produces various ratings including the Morningstar Analyst Rating for funds and the Morningstar Quantitative Rating for funds. The Analyst Rating is derived from a qualitative assessment process performed by a manager research analyst, whereas the Morningstar Quantitative Rating uses a machine-learning model based on the decision-making processes of Morningstar's analysts, their past ratings decisions, and the data used to support those decisions. In both cases, the ratings are forward-looking assessments and include assumptions of future events, which may or may not occur or may differ significantly from what was assumed. The Analyst Ratings and Quantitative Ratings are statements of opinions, subject to change, are not to be considered as guarantees, and should not be used as the sole basis for investment decisions. This press release is for informational purposes only; references to securities should not be considered an offer or solicitation to buy or sell the securities.

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