Investors Cut Risk in Trade War
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 June 2018. Investors cut risk in June 2018 as money moved out of equity and into bond funds. Overall, long-term U.S. open-end funds and ETFs had their greatest outflows since August 2015 of approximately $22.1 billion. The bulk of these outflows stemmed from U.S. equity, which saw $20.8 billion of outflows—$17.1 billion from active funds and $3.7 billion on the passive side. 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.
Morningstar’s report about U.S. asset flows for June 2018 is available here. Highlights from the report include:
- While the bulk of outflows came from U.S. equity funds, sector-equity, international-equity, allocation, alternative, and commodity funds all had net outflows. Only taxable-bond and municipal-bond funds had inflows, $15.5 and $2.6 billion, respectively. U.S. equity funds lost $20.8 billion, capping the group’s third-worst first half over the past decade.
- International-equity funds suffered the most outflows since 2008 with $9.8 billion in outflows, which was due largely to emerging-market outflows.
- The Morningstar Categories with the highest inflows in June were ultrashort-bond funds and foreign large-blend funds with respective inflows of $5.5 billion and $4.3 billion. Conversely, large-blend funds saw the most outflows of $19.4 billion in June followed by diversified emerging markets, with outflows of $8.0 billion.
- Among top U.S. fund families, Vanguard led the way with $7.4 billion in inflows; however, it’s growth continues to slow. June inflows were the firm’s smallest since 2013 with active funds seeing outflows of $4.5 billion while its passive strategies had inflows of $11.9 billion.
- The top fund for June was Vanguard Total International Stock Index Fund with $7.3 billion of inflows. The fund with the highest outflows was iShares MSCI Emerging Markets ETF with $5.3 billion.
To view the complete report, please click here.
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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 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, and real-time global market data. Morningstar also offers investment management services through its investment advisory subsidiaries, with more than $201 billion in assets under advisement and management as of March 31, 2018. The company has operations in 27 countries.
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