August 15, 2019

Morningstar Reports U.S. Mutual Fund and Exchange-Traded Fund Flows for July 2019

Strong demand for fixed-income investments, including taxable-bond, municipal-bond and money-market funds, amid falling interest rates

CHICAGO, Aug. 15, 2019 /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 July 2019. Overall, passive U.S. equity funds saw $6.6 billion in inflows while active U.S. equity funds had $23.5 billion in outflows, which together were the worst outflows for U.S. equity funds since June 2018. 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 U.S. ETFs shares outstanding and reported net assets.

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

  • In July, long-term funds collected nearly $26.7 billion, a drop from June's $46.1 billion. Net flows went to taxable-bond, municipal-bond, and money-market funds as interest-rates continued to fall.
  • Money-market funds took in $75.7 billion in July. The group has collected about $202.0 billion over the past three months alone, the strongest three-month stretch in at least 10 years.
  • Taxable-bond funds saw about $40.2 billion in inflows in July, the group's best showing since January 2018. It was also the best month for active taxable-bond funds since October 2012, which collected nearly $27.0 billion, more than twice the inflows for passive taxable-bond funds. This reflects the popularity of credit-oriented strategies, which active funds tend to favor more than their passive counterparts.
  • The positive momentum for municipal-bond funds also continued in July, as the group collected $10.2 billion in inflows. If this pace continues, 2019 could be a record year for municipal-bond inflows, which were nearly $60.9 billion for the year-to-date through July.
  • Among all U.S. fund families, Vanguard led with nearly $14.9 billion in long-term inflows. Its Vanguard Total Bond Market II Index and Vanguard Total Bond Market Index, which both currently have a Morningstar Analyst Rating™ of Silver, fared best with inflows of $3.2 billion and $2.4 billion, respectively. On the other hand, iShares had about $4.2 billion in outflows, its worst outflows since June 2018.

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 about $220 billion in assets under advisement and management as of June 30, 2019. The company has operations in 27 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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