June 27, 2018

Morningstar Reports U.S. Mutual Fund and ETF Asset Flows for May 2018

CHICAGO, June 27, 2018 /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 May 2018. In May, investors placed $29.1 billion into U.S. equity passive funds, compared with $18.2 billion in the previous month. On the active front, investors pulled $8.4 billion, compared with $11.4 billion in April. 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 for May 2018 is available here. Highlights from the report include:

  • U.S. equity was the leading asset class in May, collecting an estimated $20.7 billion in net inflows in May 2018, and its strongest month since December 2016. Taxable-bond funds followed with $14.4 billion in inflows, down from April's $25.3 billion.
  • Even though passive funds continued to outpace active funds, market-cap-weighted passive funds have taken in far more than factor-based passive strategies. During the past 12 months, $130.0 billion went to non-strategic-beta U.S. equity funds, which are mostly market-cap weighted index funds, while about $44.0 billion went to strategic-beta funds.
  • The Morningstar Categories with the highest inflows in May were large-blend, foreign large-blend, and large-growth funds, with respective inflows of $9.9 billion, $8.8 billion, and $6.5 billion. Notably for large-growth funds, it was the group's first significant inflows since December 2015 and the category's greatest monthly inflows in at least a decade. On the bottom-flowing list in May, diversified emerging markets saw the most outflows of $2.7 billion followed by mid-cap value, with outflows of $2.5 billion.  
  • Among top U.S. fund families, iShares/BlackRock led for the second consecutive month, with $14.9 billion in combined inflows and $13.1 billion coming from iShares alone. Vanguard followed with $10.7 billion.
  • Among all U.S. open-end mutual funds and ETFs, iShares Core S&P 500 ETF had the highest inflows of $5.5 billion in May. World-allocation fund T. Rowe Price Real Assets was one of the only active funds among the top 10 funds, with inflows of $1.9 billion. On the bottom-flowing list in May, iShares MSCI Emerging Markets had the greatest outflows at $2.7 billion, followed by Fidelity Low-Priced Stock, Morningstar Analyst Rating™ of Silver, with $1.4 billion in outflows.

To view the complete report, please click here.

The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete, or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.

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 $201 billion in assets under advisement and management as of March 31, 2018. 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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