October 18, 2019

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

CHICAGO, Oct. 18, 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 September 2019. Overall, passive U.S. equity funds saw $22.9 billion in inflows while active U.S. equity funds had $19.1 billion in outflows.

New in this report, Morningstar introduced a quarterly look at flows by fund cost. During the third quarter, the entirety of net flows to U.S. mutual funds went to the cheapest decile of funds. 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 September is available here. Highlights from the report include:

  • In September, long-term funds collected nearly $39.9 billion after open-end and exchange-traded funds saw combined outflows in August of nearly $16.0 billion. September saw a pause in market volatility after August's sharp declines in equity markets sparked by growing evidence of a global economic slowdown and the ongoing U.S.-China trade dispute.
  • U.S. stock funds experienced modest overall inflows of $3.8 billion in September, nowhere near the level needed to offset outflows seen in August of $15.8 billion and in July of $16.9 billion. In fact, U.S. stock fund flows finished September solidly negative for the year to date.
  • Among category groups, taxable-bond funds attracted $36.0 billion of new inflows in September, bouncing from a below-trend $16.3 billion worth of inflows seen in August. Muni-bond funds took in $5.8 billion in September and are on track for a record year of inflows.
  • International-stock funds had a fourth consecutive month of outflows, bringing year-to-date outflows to $16.6 billion. The third quarter marked the biggest outflows for these funds as a percentage of total assets since fourth-quarter 2011, when the European sovereign debt crisis peaked and the U.S.' credit rating was downgraded.
  • Among all U.S. fund families, BlackRock/iShares led in September with $17.8 billion in long-term inflows, followed by Vanguard, which slipped out of the top spot with approximately $14.4 billion in inflows.
  • State Street's flows in September were dominated by money heading in and out of SPDR S&P 500 ETF, which holds a Morningstar Analyst Rating™ of Gold. The fund's $8.6 billion in inflows contributed the lion's share of the firm's overall inflows.

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 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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