CHICAGO, Aug. 15, 2016 /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 July 2016. Active U.S.-equity funds surpassed the estimated $21.7 billion in outflows in June, with $32.9 billion exiting in July. All passive category groups saw inflows during the month, led by $33.8 billion in inflows to passive 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 ETFs by computing the change in shares outstanding.
Highlights from Morningstar's report about U.S. asset flows in July:
- Active and passive funds in the taxable bond category group led the way in terms of inflows, garnering $34.0 billion in July. Total outflows in the allocation category group were $3.5 billion.
- The intermediate-term bond fund category garnered the most flows for the fifth month in a row, taking in nearly $15.0 billion in July. The diversified emerging markets and emerging-markets bond categories joined the top five categories in July, in terms of inflows, collecting $6.5 billion and $4.6 billion, respectively.
- Investors continued to withdraw assets from funds in the large growth, Europe stock, and world allocation categories. Vanguard European Stock Index Fund experienced one of the highest outflows, losing $1.5 billion.
- Of the top 10 U.S. fund families, State Street and Vanguard were the only firms to see flows into active strategies for the second consecutive month. Fidelity and Franklin Templeton led active outflows in July, experiencing $8.9 billion and $3.8 billion in outflows, respectively. Vanguard led the way for passive inflows, gathering $21.1 billion in July.
- Invesco Diversified Dividend Fund, which has a Morningstar Analyst Rating™ of Silver, led flows into active funds in July, garnering nearly $1.3 billion. The highest inflow to a passive fund went to SPDR S&P 500 ETF, which took in more than $11 billion in July, representing the fund's highest monthly inflow since December 2014.
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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, and retirement plan providers and sponsors. Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on nearly 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries, with more than $185 billion in assets under advisement and management as of June 30, 2016. The company has operations in 27 countries.
Analyst Ratings are subjective in nature and should not be used as the sole basis for investment decisions. Analyst Ratings are based on Morningstar analysts' current expectations about future events and therefore involve unknown risks and uncertainties that may cause Morningstar's expectations not to occur or to differ significantly from what was expected. Morningstar does not represent its Analyst Ratings to be guarantees nor should they be viewed as an assessment of a fund's or the fund's underlying securities' creditworthiness. This press release is for informational purposes only; it should not be considered an offer or solicitation to buy or sell the mutual funds noted within.
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SOURCE Morningstar, Inc.