CHICAGO, March 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) fund flows for February 2020. Overall, investors backed away from U.S. equity funds and turned to perceived safe havens like bonds and cash, after the S&P 500 turned down sharply amid fears of COVID-19 (coronavirus) gripping the markets. 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. fund flows for February 2020 is available here. Highlights from the report include:
- In February, U.S. equity funds shed $17.5 billion amid the stock market's turmoil, with that group's actively managed funds suffering nearly $20.0 billion in redemptions. As evidence of investors' lack of enthusiasm for U.S. equities, a record $27.8 billion flowed out of the SPDR S&P 500 ETF, which holds a Morningstar Analyst Rating™ of Silver.
- Taxable-bond funds led category groups with $23.3 billion in inflows in February. Long-government funds had their strongest inflows since early 2019 as investors hedged their equity positions and appeared willing to take interest-rate risk instead of credit risk.
- Volatile markets also spurred investors to move into cash equivalents such as money market funds, which collected $31.4 billion in February. For the first time since October 2019, money-market funds gathered more assets than long-term funds, which saw $25.5 billion in inflows in February.
- Among the top-10 largest U.S. fund families, Vanguard led with long-term inflows of $19.8 billion in February. On the other side, SPDR State Street Global Advisors had the worst outflows of any shop—more than $27.0 billion —owing to SPDR S&P 500 ETF's outflows.
To view the complete report, please click here.
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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 $233 billion in assets under advisement and management as of Dec. 31, 2019. The Company has operations in 27 countries. For more information, visit www.morningstar.com/company. Follow Morningstar on Twitter @MorningstarInc.
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