CHICAGO, June 16, 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 May 2020. Overall, long-term mutual funds and ETFs collected $33 billion in May, marking two consecutive months of modest inflows after March's record outflows of $326 billion. Morningstar estimates net flows for mutual funds by computing the change in assets not explained by the performance of the fund, and net flows for U.S. ETFs by dividing reported net assets by shares outstanding.
Morningstar's report about U.S. fund flows for May 2020 is available here. Highlights from the report include:
- Reduced market volatility in the equity and fixed-income markets calmed flows into money market funds, which took in just $31 billion in May, yet have collected $1.1 trillion so far in 2020.
- Taxable-bond funds gathered a record $74 billion in May. The group's previous inflows record was set in January with $61 billion, and it suffered $240 billion of outflows in March. The Federal Reserve has committed to buying bond ETFs, and investors flocked to corporate bond funds in anticipation of their entry into the market.
- U.S. equity funds saw $30 billion exit in May, their strongest outflows since 2009 amid the global financial crisis. Meanwhile, record outflows of $28 billion from international equity funds in May surpassed the previous record of $20 billion set in April.
- Commodity funds garnered almost $5 billion in May following April's $12 billion in inflows. Gold vehicles accounted for most of those inflows, with $3 billion entering SPDR Gold Shares alone. Some investors see gold as a hedge against inflation and a weakening dollar as the Federal Reserve provides unprecedented monetary stimulus.
- Among fund families, Vanguard took the top spot with long-term inflows of $8 billion in May, benefitting both its actively and passively managed products. In line with the monthly trends, its taxable-bond funds led the way in asset growth, taking in $16 billion, while its U.S. and international equity funds faced outflows totaling more than $11 billion.
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 $179 billion in assets under advisement and management as of March 31, 2020. The Company has operations in 27 countries. For more information, visit www.morningstar.com/company. Follow Morningstar on Twitter @MorningstarInc.
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