Morningstar Reports U.S. Mutual Fund and Exchange-Traded Fund Flows for October 2020
CHICAGO, Nov. 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) flows for October 2020. In the lead up to November's elections, long-term mutual funds and ETFs collected $13 billion in October—on par with inflows from September and marking the seventh consecutive month of inflows. In contrast, money market funds saw outflows of nearly $50 billion, marking the fifth consecutive month of outflows from those funds.
Morningstar's report about U.S. fund flows for October 2020 is available here. Highlights from the report include:
- U.S. equity fund outflows more than doubled from September to $46 billion, the second-highest monthly outflows on record. About $35 billion of these outflows came from actively managed funds while passively managed funds saw $11 billion exit. International equity funds posted outflows for the ninth month in a row, with $1.8 billion leaving in October and total outflows from the group amounting to $6 billion since August.
- Taxable-bond funds led all category groups in October with $62 billion in inflows, with total inflows of $316 billion for the year to date. While many investors moved towards moderate risk categories such as intermediate-core bond, others put money into short-term and ultrashort bond funds, suggesting a conservative stance in the face of economic and political uncertainty as well as rock-bottom interest rates. Collectively, short-term and ultrashort bond funds took in nearly $19 billion during the month.
- Municipal-bond funds also gathered $6 billion in October, and investors targeted strategies that are thought to offer lower issuer and interest-rate risk. Of these inflows, $3.9 billion went to muni national short funds, which typically spread assets across various municipal issuers and sport modest durations.
- Vanguard continues to lead among fund families, collecting $12.8 billion in inflows in October, while iShares closely followed with inflows of $9.5 billion. IShares' taxable-bond funds drove much of the firm's increase, collecting $7 billion for the month. Meanwhile, SPDR State Street topped the list of firms seeing outflows at $7 billion, while Invesco saw outflows of $5.3 billion, with investors pulling roughly equal amounts from its active and passive funds.
To view the complete report, please click here.
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