CHICAGO, Oct. 19, 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 September 2020. Among long-term funds, open-end funds are on track for their worst calendar year ever after suffering $317 billion of outflows so far in 2020. ETFs, by contrast, have raked in $313 billion for the year to date. That is by far the widest asset-flows disparity between the two investment types since 1993, according to Morningstar data.
Morningstar's report about U.S. fund flows for September 2020 is available here. Highlights from the report include:
In a month when the S&P 500 index reached a new all-time high on Sept. 2, 2020 before pulling back, long-term mutual funds and ETFs saw inflows of $13 billion in September, marking the sixth consecutive month of inflows. Separately, open-end mutual funds had $22 billion of outflows while ETFs collected $34 billion.
Money market funds, which had windfalls earlier in the year amid market tumult, also had outflows of $117 billion in September. Looking at the third quarter of 2020, these funds had a hefty $223 billion of outflows, the most since 2010's first quarter but only a fraction of the $1.5 trillion they collected from April 2019 through June 2020.
Among category groups, taxable-bond funds continued to lead with another $39 billion of inflows in September following August's $77 billion of inflows. They also netted a healthy $202 billion for the quarter—just shy of the record $203 billion they accumulated during the previous quarter. As in August, investors continued to seek middle-of-the-road risk exposure in September, putting nearly $15 billion into intermediate core and $10 billion into intermediate core-plus funds.
Investors continued to pull money out of U.S. equity funds in September. Although the $21 billion that left U.S. equity funds in September was the smallest amount since April's $18 billion, the group suffered record quarterly outflows of $119 billion.
Allocation funds marked 64 consecutive months of outflows in September, with the world allocation category accounting for half of the month's $8.3 billion in net redemptions.
Vanguard retained the top spot among fund families with approximately $11.7 billion of inflows, with inflows on both the active and passive fronts during the month. The firm benefited from investors' interest in taxable-bond funds; Vanguard's offerings in that category collected more than $13 billion. Dimensional Fund Advisors' $4 billion of outflows in September was the most among fund families. The firm has had at least $2.6 billion of outflows every month since March 2020.
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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 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 $205 billion in assets under advisement and management as of June 30, 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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