Morningstar Reports U.S. Mutual Fund and Exchange-Traded Fund Flows for September 2020
Morningstar reported significant disparities in U.S. mutual fund and ETF flows for September 2020. Long-term mutual funds faced outflows of $317 billion year-to-date, while ETFs saw inflows of $313 billion, marking the widest gap since 1993. In September alone, mutual funds had $22 billion of outflows compared to ETFs' $34 billion inflows. Notably, taxable-bond funds led with inflows of $39 billion. However, U.S. equity funds experienced $21 billion in outflows, contributing to a record quarterly loss of $119 billion.
- ETFs accumulated $313 billion in inflows year-to-date, indicating strong investor preference.
- Taxable-bond funds attracted $39 billion in September, highlighting a positive trend.
- Long-term mutual funds faced $317 billion in outflows, tracking for a record decline.
- U.S. equity funds suffered $21 billion in outflows in September, with a record quarterly total of $119 billion.
CHICAGO, Oct. 19, 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 September 2020. Among long-term funds, open-end funds are on track for their worst calendar year ever after suffering
Morningstar's report about U.S. fund flows for September 2020 is available here. Highlights from the report include:
- In a month when the S&P 500 index reached a new all-time high on Sept. 2, 2020 before pulling back, long-term mutual funds and ETFs saw inflows of
$13 billion in September, marking the sixth consecutive month of inflows. Separately, open-end mutual funds had$22 billion of outflows while ETFs collected$34 billion . - Money market funds, which had windfalls earlier in the year amid market tumult, also had outflows of
$117 billion in September. Looking at the third quarter of 2020, these funds had a hefty$223 billion of outflows, the most since 2010's first quarter but only a fraction of the$1.5 trillion they collected from April 2019 through June 2020. - Among category groups, taxable-bond funds continued to lead with another
$39 billion of inflows in September following August's$77 billion of inflows. They also netted a healthy$202 billion for the quarter—just shy of the record$203 billion they accumulated during the previous quarter. As in August, investors continued to seek middle-of-the-road risk exposure in September, putting nearly$15 billion into intermediate core and$10 billion into intermediate core-plus funds. - Investors continued to pull money out of U.S. equity funds in September. Although the
$21 billion that left U.S. equity funds in September was the smallest amount since April's$18 billion , the group suffered record quarterly outflows of$119 billion . - Allocation funds marked 64 consecutive months of outflows in September, with the world allocation category accounting for half of the month's
$8.3 billion in net redemptions. - Vanguard retained the top spot among fund families with approximately
$11.7 billion of inflows, with inflows on both the active and passive fronts during the month. The firm benefited from investors' interest in taxable-bond funds; Vanguard's offerings in that category collected more than$13 billion . Dimensional Fund Advisors'$4 billion of outflows in September was the most among fund families. The firm has had at least$2.6 billion of outflows every month since March 2020.
To view the complete report, please click here.
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FAQ
What were the mutual fund and ETF flows for September 2020?
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