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

Rhea-AI Summary

Morningstar reported U.S. mutual fund and ETF flows for July 2021, totaling $72 billion, below the $121 billion monthly average in H1 2021. ETFs attracted $49 billion, while actively managed funds collected $15 billion. International-equity funds continued strong performance with $30 billion inflows. However, U.S. equity funds faced $7.2 billion in outflows for the first time since January. Taxable-bond funds gathered $33 billion, their lowest since March 2020, while sustainability funds saw significant growth, attracting over $45 billion in 2021 so far.

Positive

• International-equity funds showed strong demand with $30 billion inflows, continuing a nine-month streak.
• Funds focused on sustainability attracted over $45 billion in the first seven months of 2021, indicating increasing investor interest.

Negative

• Total fund flows of $72 billion were significantly lower than the $121 billion monthly average in the first half of 2021.
• U.S. equity funds experienced their first outflows since January, losing $7.2 billion, demonstrating a potential shift in investor sentiment.
• Taxable-bond funds had their lowest intake since March 2020 with $33 billion, reflecting reduced demand.

CHICAGO, Aug. 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 July 2021. Long-term mutual funds and ETFs gathered $72 billion in July, a modest intake relative to the average pace of $121 billion per month in the first half of 2021.

Morningstar's report about U.S. fund flows for July 2021 is available here. Highlights from the report include:

• Passively managed strategies pulled in $57 billion, mostly due to ETFs' $49 billion inflow, while actively managed funds collected about $15 billion.  
• Demand for international-equity funds remained strong in July as they collected $30 billion, marking their ninth consecutive month of inflows. 
• Taxable-bond funds gathered $33 billion in July. While that was the most among category groups, it was their lowest intake since March 2020 when they shed $242 billion. 
• U.S. equity funds posted their first month of outflows since January as they bled $7.2 billion, though they had already lost momentum following a record intake in March. 
• Various sector-equity funds focused on value stocks suffered outflows in July after collecting strong inflows during the first six months of the year.
• Funds focused on sustainability continued to gather assets at a healthy rate. After collecting about $14 billion in 2019, they picked up $52 billion in 2020 and have raked in over $45 billion in just the first seven months of 2021.

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 $251 billion in assets under advisement and management as of June 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.

©2021 Morningstar, Inc. All Rights Reserved.

MORN-R

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

 

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SOURCE Morningstar, Inc.

FAQ

What were the total fund flows for Morningstar in July 2021?

Morningstar reported total fund flows of $72 billion for July 2021.

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

U.S. equity funds faced outflows of $7.2 billion in July 2021.

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

International-equity funds attracted $30 billion in inflows in July 2021.

How much did taxable-bond funds gather in July 2021?

Taxable-bond funds gathered $33 billion in July 2021.

What is the trend of sustainability funds according to Morningstar?

Sustainability funds have seen significant growth, attracting over $45 billion in the first seven months of 2021.