Morningstar Reports U.S. Mutual Fund and ETF Fund Flows for Full-Year and December 2021

Rhea-AI Summary

Morningstar, Inc. (MORN) reported record U.S. mutual fund and ETF flows for December 2021, totaling $88 billion and a full-year total of $1.2 trillion, the highest since 1993. Key highlights include $96 billion inflows for passive funds and outflows of $8 billion for active funds in December. Taxable-bond funds reached $531 billion for the year, while U.S. equity funds saw $30 billion in December, totaling $151 billion for 2021. Sustainable funds also excelled, with a $71 billion intake for the year.

Positive

• Record full-year flows of $1.2 trillion, highest since 1993.
• Passive funds attracted $958 billion in 2021, outperforming active funds significantly.
• Taxable-bond funds set an annual record with $531 billion inflows.
• U.S. equity funds rebounded with $151 billion inflows after previous outflows.

Negative

• Active funds continued to experience significant outflows, totaling $195 billion in 2021.
• Taxable-bond inflows for December were the lowest of the year at $16 billion.

CHICAGO, Jan. 21, 2022 /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 the full-year and December 2021. Long-term mutual funds and ETFs collected $88 billion in December, bringing their annual total to $1.2 trillion, the highest amount on record in data going back to 1993.

Morningstar's report about U.S. fund flows for the full-year and December 2021 is available here. Highlights from the report include:

• Passively managed funds had approximately $96 billion of inflows in December while active funds had more than $8 billion of outflows. Passive funds had a $958 billion intake in 2021, over $700 billion more than their active counterparts.
• Taxable-bond funds' $16 billion inflow in December was their lowest monthly total of the year, but they set an annual record in 2021 with a $531 billion intake, the most of any U.S. category group.
• In December, U.S. equity funds had inflows of $30 billion, bringing their 2021 total intake to $151 billion. After record outflows of $240 billion in 2020, investors reembraced U.S. equity funds in 2021 as markets performed well and interest rates remained low. Passive funds represented nearly all of U.S. equity inflows with an intake of $346 billion during the year, while active funds had outflows of $195 billion.
• International-equity funds took in $29 billion in December and $262 billion for all of 2021, the most of any equity U.S. category group.
• Funds focused on environmental, social, and governance objectives had a strong year in 2021. Their $71 billion intake for the year surpassed 2020's $51 billion. Sustainable U.S. equity funds led the group with $34 billion of inflows.
• Fund families with prominent passive fund lineups brought in the most assets in 2021, particularly Vanguard, which pulled in the most at $362 billion.

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 and owners, 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 $260 billion in assets under advisement and management as of Sept. 30, 2021. The Company has operations in 29 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. 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.

©2022 Morningstar, Inc. All Rights Reserved.

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Media Contact:

Landon Hudson, +1 312 696-6037 or newsroom@morningstar.com

 

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SOURCE Morningstar, Inc.

FAQ

What were the U.S. mutual fund and ETF flows for December 2021?

In December 2021, U.S. mutual funds and ETFs saw total inflows of $88 billion.

How much did Morningstar report for full-year mutual fund and ETF flows in 2021?

Morningstar reported record full-year flows of $1.2 trillion for 2021.

What is the performance of passive vs active funds according to Morningstar's report?

Passive funds had inflows of $96 billion in December while active funds experienced outflows of $8 billion.

What was the total inflow for U.S. equity funds in 2021?

U.S. equity funds had a total inflow of $151 billion for the year 2021.

Did sustainable funds perform well in 2021 according to Morningstar?

Yes, sustainable funds attracted $71 billion in 2021, surpassing their 2020 total.