Morningstar Reports U.S. Mutual Fund and ETF Fund Flows for February 2019

Press Release from Morningstar

CHICAGO, March 20, 2019 /PRNewswire/ -- Morningstar, Inc. (Nasdaq: MORN), a leading provider of independent investment research, today reported estimated U.S. mutual fund and exchange-traded fund (ETF) fund flows for February 2019. Overall, passive U.S. equity funds took in nearly $13.1 billion while active U.S. equity funds lost $9.9 billion to outflows. 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 U.S. ETFs shares outstanding and reported net assets.

Morningstar's report about U.S. fund flows for February is available here. Highlights from the report include:

  • Overall, long-term flows in February were $53.5 billion, their best month since January 2018. For the first two months of 2019, long-term flows were $92.7 billion, marking a strong start to 2019.
  • With the Federal Reserve signaling a pause in interest-rate increases, taxable-bond investors flocked to February's most popular categories: intermediate-term bond, and high-yield bond, which collected $15.5 billion and $5.6 billion, respectively. With the Federal Reserve held at bay, ultrashort bond funds collected just $3.8 billion in 2019, with short-term bond and short-government funds contributing about $5.0 billion combined.
  • Leading Morningstar Categories in February were intermediate-term bond and large-blend funds with $15.5 billion and $9.2 billion in inflows, respectively.
  • Active funds saw $11.4 billion in inflows overall, which was just the group's fifth month with more than $10.0 billion of inflows during the past three years. Passive funds collected $42.2 billion.
  • Among the 10 largest U.S. fund families, Vanguard dominated overall inflows with $20.5 billion, followed by Fidelity with $9.5 billion. Vanguard's overall market share is now 25 percent. Vanguard Total Bond Market II Index, the month's top-flowing fund which boasts a Morningstar Analyst Rating™ of Silver, contributed flows of $5.3 billion.
  • Franklin Templeton was the only firm in the top 10 to see outflows this month of $1.2 billion, but this was its best showing since May 2015. The firm's active lineup has struggled amid the trend toward passive vehicles.

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 $193 billion in assets under advisement and management as of Dec. 31, 2018. The company has operations in 27 countries. For more information, visit Follow Morningstar on Twitter @MorningstarInc.

Morningstar's Manager Research Group consists of various wholly owned subsidiaries of Morningstar, Inc. including, but not limited to, Morningstar Research Services LLC. Analyst Ratings are subjective in nature and should not be used as the sole basis for investment decisions. Analyst Ratings are based on Morningstar's Manager Research Group's current expectations about future events and therefore involve unknown risks and uncertainties that may cause such expectations not to occur or to differ significantly from what was expected. Analyst Ratings are not guarantees nor should they be viewed as an assessment of a fund's or a fund's or separately managed account's underlying securities' creditworthiness. This press release is for informational purposes only; references to securities or a separately managed account investment strategy in this press release should not be considered an offer or solicitation to buy or sell the securities or to invest in accordance with that strategy.

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