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

Rhea-AI Summary

Morningstar, Inc. (MORN) reported that U.S. mutual fund and ETF flows totaled $83 billion in May 2021, a significant decline from $156 billion in March and $124 billion in April. Index-tracking funds attracted $71 billion, representing continued investor preference for passive strategies. Taxable-bond funds led inflows with $38 billion, while U.S. equity funds saw minimal growth with just $211 million. Notably, international-equity funds maintained momentum with $23 billion in inflows for seven consecutive months.

Positive

• International-equity funds experienced strong demand with $23 billion in inflows for seven straight months.
• Taxable-bond funds attracted $38 billion, leading among categories despite lower relative inflows compared to earlier in the year.
• Large-value funds recorded their second-highest monthly intake in the database with $13 billion.

Negative

• Total mutual fund and ETF flows dropped to $83 billion, down from $156 billion in March and $124 billion in April.
• U.S. equity fund flows were significantly lower, with only $211 million inflow after a record $54 billion in March.

CHICAGO, June 15, 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 May 2021. Long-term mutual funds and ETFs collected $83 billion during May, materially less than their $156 billion haul in March and $124 billion intake in April. Investors continued to favor passively managed strategies, pouring $71 billion into index-tracking funds.

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

• Taxable-bond funds took in $38 billion, the highest total among category groups but modest relative to inflows earlier in the year.
• After taking in a record $54 billion in March, U.S. equity fund flows were quiet for the second consecutive month with just $211 million of inflows in May.
• Large-value funds picked up about $13 billion, their second-highest monthly intake in Morningstar's database which goes back to 1993.
• International-equity funds gathered $23 billion, extending their streak of inflows to seven months.
• Sector equity funds took in $6 billion, driven by inflows into passive funds that track cyclical equities such as financials and natural resources.
• Bank-loan funds collected $3.7 billion, their sixth consecutive month of inflows after a long streak of outflows dating back to November 2018. Their year-to-date organic growth rate of 33% was the highest within the taxable-bond category group.

The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed outside the scope of this press release; 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 $244 billion in assets under advisement and management as of March 31, 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. 

©2021 Morningstar, Inc. All Rights Reserved.

MORN-R

Media Contact:
Erin Parro, newsroom@morningstar.com

 

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SOURCE Morningstar, Inc.

FAQ

What are the mutual fund and ETF flows reported by Morningstar for May 2021?

Morningstar reported total U.S. mutual fund and ETF flows of $83 billion for May 2021.

How much did index-tracking funds collect in May 2021 according to Morningstar?

Index-tracking funds collected $71 billion in May 2021.

What was the inflow amount for international-equity funds in May 2021?

International-equity funds saw inflows of $23 billion in May 2021.

What were the inflows for U.S. equity funds in May 2021?

U.S. equity funds experienced minimal inflows of only $211 million in May 2021.