Morningstar Reports U.S. Mutual Fund and Exchange-Traded Fund Flows for October 2020
Morningstar, Inc. (Nasdaq: MORN) reported that U.S. mutual funds and ETFs attracted $13 billion in October 2020, maintaining consistent inflows for seven consecutive months. However, U.S. equity funds faced significant outflows of $46 billion, primarily affecting actively managed funds. In contrast, taxable-bond funds saw robust inflows of $62 billion, with total year-to-date inflows reaching $316 billion. Vanguard led fund families with inflows of $12.8 billion, while SPDR experienced the largest outflows at $7 billion.
- Taxable-bond funds reported record inflows of $62 billion in October 2020.
- Year-to-date inflows for taxable-bond funds total $316 billion, indicating strong investor interest.
- Vanguard's inflows of $12.8 billion show its continued dominance in the fund market.
- U.S. equity funds faced substantial outflows of $46 billion, the second-highest monthly outflows recorded.
- Actively managed equity funds saw over $35 billion in outflows, signaling a shift in investor confidence.
CHICAGO, Nov. 18, 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 October 2020. In the lead up to November's elections, long-term mutual funds and ETFs collected
Morningstar's report about U.S. fund flows for October 2020 is available here. Highlights from the report include:
- U.S. equity fund outflows more than doubled from September to
$46 billion , the second-highest monthly outflows on record. About$35 billion of these outflows came from actively managed funds while passively managed funds saw$11 billion exit. International equity funds posted outflows for the ninth month in a row, with$1.8 billion leaving in October and total outflows from the group amounting to$6 billion since August. - Taxable-bond funds led all category groups in October with
$62 billion in inflows, with total inflows of$316 billion for the year to date. While many investors moved towards moderate risk categories such as intermediate-core bond, others put money into short-term and ultrashort bond funds, suggesting a conservative stance in the face of economic and political uncertainty as well as rock-bottom interest rates. Collectively, short-term and ultrashort bond funds took in nearly$19 billion during the month. - Municipal-bond funds also gathered
$6 billion in October, and investors targeted strategies that are thought to offer lower issuer and interest-rate risk. Of these inflows,$3.9 billion went to muni national short funds, which typically spread assets across various municipal issuers and sport modest durations. - Vanguard continues to lead among fund families, collecting
$12.8 billion in inflows in October, while iShares closely followed with inflows of$9.5 billion . IShares' taxable-bond funds drove much of the firm's increase, collecting$7 billion for the month. Meanwhile, SPDR State Street topped the list of firms seeing outflows at$7 billion , while Invesco saw outflows of$5.3 billion , with investors pulling roughly equal amounts from its active and passive funds.
To view the complete report, please click here.
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FAQ
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