CHICAGO, April 15, 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 March 2020. As equities and pockets of the bond market sold off in March, long-term mutual funds and ETFs posted record outflows of $326 billion, or 1.7% of the industry's $19.7 trillion in assets at the end of February. 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 by dividing reported net assets by shares outstanding.
Morningstar's report about U.S. fund flows for March 2020 is available here. Highlights from the report include:
- Despite the turmoil in equity markets, long-term U.S. equity funds attracted $10.5 billion in net inflows during March. Passively managed equity funds accounted for virtually all the inflows, bringing in $41 billion. More than $12 billion of that went to SPDR S&P 500 ETF, which holds a Morningstar Analyst Rating™ of Silver. Actively managed funds shed $31 billion, almost the same amount as in January before the sell-off began.
- In March, taxable-bond funds suffered record outflows of $240 billion, which was also the greatest outflows for any asset class in March. It ended a streak of 14 consecutive months of inflows in which taxable-bond funds collected $479 billion. Money market funds gathered a record $685 billion in inflows in March. For the quarter, these funds raked in $694 billion—a 19% organic growth rate.
- Among all fund families, Fidelity led with $39 billion of outflows from its long-term funds in March (2.3% of its February total net assets), with nearly $23 billion coming out of its taxable- and muni-bond offerings. For only the second time in 10 years, Vanguard's long-term funds experienced net monthly outflows of $37 billion, mostly from its bond funds as well. On the other hand, equity-heavy American Funds came through relatively unscathed, with its $16 billion of outflows amounting to less than 1% of its February assets.
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 $233 billion in assets under advisement and management as of Dec. 31, 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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SOURCE Morningstar, Inc.