CHICAGO, Aug. 22, 2018 /PRNewswire/ — 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 July 2018. In July, investors placed $14.1 billion into passive U.S. equity funds, compared with outflows of $3.7 billion in the previous month. On the active front, investors pulled $11.2 billion, compared with $17.1 billion of outflows as reported last month. 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 July 2018 is available here. Highlights from the report include:
Following June’s $22.1 billion in outflows, long-term U.S. open-end and exchange-traded funds rebounded modestly with an estimated $32.1 billion in inflows in July.
The leading category group in July was taxable-bond funds, with $24.8 billion in inflows and more than two thirds of which came from passive funds.
Actively-managed funds saw outflows in every major category group except for taxable bond and municipal bond. Across all groups, active market share dropped to 62.4 percent from 64.6 percent year over year.
Within Morningstar categories, ultrashort-bond was the most popular with $6.8 billion in inflows. World large-stock and large-growth categories were the least popular, each with approximately $3.0 billion in outflows.
Among top U.S. fund families, both Vanguard and State Street Advisors SPDR funds had their strongest inflows since January. Vanguard led the pack with $15.4 billion in inflows while Franklin Templeton continued to see outflows on the active side of $2.7 billion. State Street’s $10.5 billion of inflows ranked second across families for highest July inflows.
Among all U.S. open-end mutual funds and ETFs, iShares MSCI EAFE ETF and JPMorgan Global Research Enhanced Index Fund both saw the greatest outflows this month, at $1.4 billion each. This happened in a month when the U.S. equity Morningstar Category saw higher inflows than the international equity category, a relative rarity in recent years.
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