Morningstar Reports U.S. Mutual Fund and Exchange-Traded Fund Flows for January 2021

Rhea-AI Summary

Morningstar reported that U.S. mutual funds and ETFs gathered $95 billion in January 2021. Despite this, U.S. equity funds faced substantial outflows totaling $38 billion, with $26 billion from actively managed and $12 billion from passively managed funds. Taxable-bond funds attracted $79 billion in inflows, leading the category. Intermediate core bond funds had inflows over $25 billion. Municipal-bond funds saw a record $15.9 billion inflow, driven by expected federal support. Vanguard led inflows with $38 billion overall.

Positive

• Taxable-bond funds attracted $79 billion of inflows in January.
• Intermediate core bond funds saw inflows exceeding $25 billion.
• Municipal-bond funds recorded a historic $15.9 billion inflow.
• Vanguard led with $38 billion of long-term fund inflows in January.

Negative

• U.S. equity funds experienced outflows of $38 billion in January.
• $26 billion of outflows came from actively managed equity funds.
• $12 billion was withdrawn from passively managed equity funds.
• State Street Global Advisors faced $5 billion in outflows.

CHICAGO, Feb. 18, 2021 /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 January 2021. For the month of January, long-term mutual funds and ETFs collected $95 billion. U.S. equity funds had outflows of $38 billion in January, with approximately $26 billion of that from actively managed funds and $12 billion from passively managed funds.

Morningstar's report about U.S. fund flows for January 2021 is available here. Additional highlights from the report include:

• Among U.S. category groups, taxable-bond funds dominated, with $79 billion of inflows in January and $459 billion of inflows over the trailing 12 months, the most by far for any group.
• Investors continued to pour assets into intermediate core bond and intermediate core-plus bond funds, which each saw near-record inflows of more than $25 billion and $13 billion, respectively.
• Municipal-bond funds saw a record of $15.9 billion of inflows, potentially in anticipation of increased federal support for cash-strapped municipalities.
• Sector-equity funds took in $18 billion, their fourth-straight month of gains, powered by big flows into financial and clean-energy ETFs.
• At the fund level, passive bond funds attracted the largest inflows in January. Vanguard Total Bond Market II Index topped the list with $6.9 billion of inflows. In addition, Ark Innovation ETF joined the top 10 for the second month in a row with $3 billion of inflows.
• Equity funds dominated the list of funds with the biggest outflows, with SPDR S&P 500 ETF seeing nearly $12 billion of outflows. Other large funds, such as Vanguard Institutional Index and iShares Core S&P 500 ETF, posted multibillion-dollar outflows.
• Vanguard led all fund families with $38 billion of long-term fund inflows during January, with its taxable-bond funds taking in the most among major categories with $27 billion. State Street Global Advisors had the month's heaviest outflows at $5 billion.

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 $215 billion in assets under advisement and management as of Sept. 30, 2020. 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.

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Media Contact:
Sarah Wirth, +1 312 244-7358 or sarah.wirth@morningstar.com

 

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SOURCE Morningstar, Inc.

FAQ

What were the mutual fund and ETF flows reported by Morningstar for January 2021?

Morningstar reported total inflows of $95 billion for U.S. mutual funds and ETFs in January 2021.

How much did U.S. equity funds lose in outflows during January 2021?

U.S. equity funds had outflows of $38 billion in January 2021.

Which fund categories performed well in terms of inflows according to Morningstar?

Taxable-bond funds led with $79 billion in inflows, followed by municipal-bond funds with $15.9 billion.

Who led the long-term fund inflows in January 2021?

Vanguard led with $38 billion in long-term fund inflows during January 2021.