Morningstar Reports U.S. Mutual Fund and ETF Fund Flows for June 2020

Rhea-AI Summary

On July 17, 2020, Morningstar reported significant U.S. mutual fund and ETF flows for June 2020. Total inflows reached $70 billion, marking the strongest month since January. The second quarter saw inflows of $121 billion, recovering from $327 billion in outflows from March. Taxable-bond funds hit a record with $92 billion in June, while U.S. equity funds experienced $24 billion in outflows. The report underscores a rebound in bond fund investments.

Positive

• Long-term mutual funds and ETFs recorded $70 billion in June 2020, the highest since January.
• Taxable-bond funds achieved a record inflow of $92 billion in June, surpassing May by $17 billion.
• Second-quarter inflows totaled $121 billion, effectively recovering from significant outflows in March.

Negative

• U.S. equity funds faced outflows of $24 billion in June, contributing to a record $72 billion in net redemptions for the second quarter.
• International equity funds suffered a record outflow of $65 billion for the second quarter.

CHICAGO, July 17, 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 June 2020. Overall, long-term mutual funds and ETFs collected $70 billion in June, their strongest month since January. Second-quarter inflows for these funds totaled $121 billion, replacing more than a third of the record $327 billion of outflows in March.

Morningstar's report about U.S. fund flows for June 2020 is available here. Highlights from the report include:

• Taxable-bond funds set another record in June, collecting $92 billion for the month and surpassing the previous record set in May by $17 billion. The group gathered $204 billion for the second quarter, rebounding from outflows of $240 billion in March.
• U.S. equity funds lost nearly $24 billion to outflows in June, bringing the second quarter's net redemptions to a record $72 billion. This surpassed the previous record of $55 billion of outflows set in the first quarter of 2009, as stock markets approached their low point during the global financial crisis. After $18 billion of outflows in June, international equity funds suffered a record $65 billion in outflows for the second quarter.
• Within taxable-bond categories, intermediate-core bond funds collected a record $23 billion in June. This surge owed partly to the Federal Reserve ramping up its purchases of corporate-bond ETFs (BlackRock manages investments for the Secondary Market Corporate Credit Facility—the program under which the Federal Reserve buys corporate-bond ETFs—and BlackRock will waive any management fees it would earn from purchasing its own funds through the facility.) As a result, corporate-bond funds saw inflows of $14 billion in June.
• Among fund families, the BlackRock/iShares family topped the list in June with a combined $22 billion of inflows, primarily driven by the Federal Reserve's entry into the corporate-bond ETF market. Vanguard came in close second with nearly $21 billion of inflows, benefitting from strong flows into its bond index funds.

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 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 $179 billion in assets under advisement and management as of March 31, 2020. The Company has operations in 27 countries. For more information, visit -1%26h%3D935749382%26u%3Dhttps%253A%252F%252Fc212.net%252Fc%252Flink%252F%253Ft%253D0%2526l%253Den%2526o%253D2725731-1%2526h%253D3899002592%2526u%253Dhttp%25253A%25252F%25252Fwww.morningstar.com%25252Fcompany%2526a%253Dwww.morningstar.com%25252Fcompany%26a%3Dwww.morningstar.com%252Fcompany&a=www.morningstar.com%2Fcompany" rel="nofollow">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.

©2020 Morningstar, Inc. All Rights Reserved.

MORN-R

Media Contact:
Rebecca Rogalski, +1 312 244-7771 or rebecca.rogalski@morningstar.com

 

View original content to download multimedia:http://www.prnewswire.com/news-releases/morningstar-reports-us-mutual-fund-and-etf-fund-flows-for-june-2020-301095154.html

SOURCE Morningstar, Inc.

FAQ

What are the mutual fund and ETF flows reported by Morningstar for June 2020?

Morningstar reported total inflows of $70 billion for mutual funds and ETFs in June 2020.

How much did taxable-bond funds collect in June 2020?

Taxable-bond funds collected a record $92 billion in June 2020.

What were the outflows for U.S. equity funds in June 2020?

U.S. equity funds experienced outflows of $24 billion in June 2020.

How did the second-quarter inflows compare to March 2020?

Second-quarter inflows totaled $121 billion, recovering from $327 billion in outflows in March.