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

Rhea-AI Summary

Morningstar reported record U.S. mutual fund and ETF flows of $144 billion for February 2021. ETFs led with inflows of approximately $92 billion, while long-term mutual funds attracted $53 billion. Notably, inflation-protected bond funds gathered $7 billion, marking their all-time high. U.S. equities saw a surge of $38 billion, with large-blend funds leading at $22 billion. Sector equity funds particularly excelled, with $25 billion inflows, driven mainly by technology-themed funds. Vanguard led fund family inflows at around $37 billion.

Positive

• Total mutual fund and ETF inflows reached a record $144 billion in February 2021.
• ETFs attracted approximately $92 billion, with strong demand for equity funds.
• U.S. equities received inflows of $38 billion, almost reversing January's outflows.
• Natural resource funds saw their highest monthly inflow in a decade at $2.5 billion.
• Inflation-protected bond funds achieved a record inflow of $7 billion.

Negative

• None.

CHICAGO, March 17, 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 February 2021. For the month of February, long-term mutual funds and ETFs collected a record $144 billion. ETFs collected approximately $92 billion, driven by a move into equity funds, while open-end funds took in $53 billion, led by flows into fixed-income strategies.

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

• Interest rate- and commodity-sensitive categories, such as financial and natural resource equity funds and inflation-protected bond funds, saw sharp organic growth. For example, natural resource funds, which tend to focus on materials stocks, took in nearly $2.5 billion, the highest monthly inflow in the past decade. Inflation-protected bond funds collected nearly $7 billion in February, a record for the category.
• Among U.S. category groups, U.S. equities took in a record $38 billion in February, almost recouping January's outflows. Large-blend funds took in the most assets of any category at $22 billion.
• Sector equity funds attracted a record monthly inflow of $25 billion. Technology-themed funds led the way, gathering over $7 billion. Technology funds' month-over-month organic growth rate of 2.5% was the highest since November 2015.
• Taxable bonds had another strong month in February, taking in approximately $57 billion for the month, bringing their total over the trailing 12 months to $493 billion, the most by far of any category group.
• Among fund families, Vanguard had approximately $37 billion of inflows, of which $34 billion went to passive strategies, while iShares followed with inflows of $16 billion. American Funds, an active manager, took in nearly $3 billion, with $1.6 billion entering American Funds Bond Fund of America.

To view the complete report, please click here.

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, 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 $227 billion in assets under advisement and management as of Dec. 31, 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 are the total mutual fund and ETF inflows reported by Morningstar for February 2021?

Morningstar reported total mutual fund and ETF inflows of $144 billion for February 2021.

How much did U.S. equities attract in inflows during February 2021?

U.S. equities attracted $38 billion in inflows during February 2021.

What helped drive the record inflows in ETFs for February 2021?

The record inflows in ETFs were primarily driven by a move into equity funds.

Which fund family had the highest inflows according to Morningstar's report?

Vanguard had the highest inflows, approximately $37 billion, in February 2021.

What was the inflow amount for inflation-protected bond funds in February 2021?

Inflation-protected bond funds collected nearly $7 billion, marking a record for the category.