CHICAGO, Jan. 17, 2019 /PRNewswire/ -- Morningstar, Inc. (Nasdaq: MORN), a leading provider of independent investment research, today reported estimated U.S. mutual fund and exchange-traded fund (ETF) asset flows for full-year and December 2018. In 2018, investors placed $207.0 billion into passive U.S. equity funds and pulled $174.0 billion out of active U.S. equity funds. In December 2018, investors directed $45.6 billion of inflows to passive U.S. equity funds, but $31.5 billion of outflows from actively managed U.S. equity funds. Morningstar estimates net flow for mutual funds by computing the change in assets not explained by the performance of the fund, and net flow for U.S. ETFs shares outstanding and reported net assets.
Morningstar's report about U.S. asset flows for full-year and December 2018 is available here. Highlights from the report include:
Overall, long-term U.S. funds collected just $157.0 billion in inflows in 2018, which is the lowest calendar-year total since 2008. Money-market funds had strong inflows of $57.0 billion, capping their best year since 2008.
The two Morningstar Categories with the highest inflows in 2018 were large-blend funds and foreign large-blend funds. Large-blend funds had strong inflows of $91.5 billion, while foreign large-blend funds collected nearly $91.0 billion in 2018.
The fund with the highest inflows in 2018 was Vanguard Total International Stock Market Index, which boasts a Morningstar Analyst Rating™ of Gold, at $50.2 billion in new flows. Gold-rated Vanguard Total Stock Market Index was the runner-up with $49.2 billion of inflows.
From a monthly perspective, long-term U.S. funds in December saw $83.0 billion exit the category, the greatest monthly outflows since October 2008, noting that industry assets in 2008 were less than half of what they were at the end of 2018. December outflows spanned asset classes with taxable-bond funds faring the worst at $43.0 billion, their greatest outflows since June 2013.
Morningstar U.S. category groups sector equity, allocation, international equity, and alternative funds all had their greatest outflows in at least a decade in December, with outflows of $17.9 billion, $16.5 billion, $13.1 billion, and $7.7 billion, respectively.
Among the top-10 largest U.S. fund families, iShares saw the highest monthly inflows with a firm record $36.1 billion, which was more than triple runner-up Vanguard's $11.4 billion in inflows. For the year, iShares' $136.0 billion trailed Vanguard's $161.0 billion, but it saw stronger fourth-quarter inflows of $63.0 billion versus Vanguard's $31.0 billion.
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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 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, and real-time global market data. Morningstar also offers investment management services through its investment advisory subsidiaries, with more than $207 billion in assets under advisement and management as of Sept. 30, 2018. The company has operations in 27 countries. For more information, visit www.morningstar.com/company. Follow Morningstar on Twitter @MorningstarInc.
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