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U.S. mutual funds and ETFs surpassed estimated $21.7bn in outflows

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Staff Writer | August 16, 2016
Active U.S.-equity funds surpassed the estimated $21.7 billion in outflows in June, with $32.9 billion exiting in July, according to Morningstar.
Money   All passive category groups saw inflows
All passive category groups saw inflows during the month, led by $33.8 billion in inflows to passive U.S. equity funds.

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.

Active and passive funds in the taxable bond category group led the way in terms of inflows, garnering $34.0 billion in July. Total outflows in the allocation category group were $3.5 billion.

The intermediate-term bond fund category garnered the most flows for the fifth month in a row, taking in nearly $15.0 billion in July. The diversified emerging markets and emerging-markets bond categories joined the top five categories in July, in terms of inflows, collecting $6.5 billion and $4.6 billion, respectively.

Investors continued to withdraw assets from funds in the large growth, Europe stock, and world allocation categories. Vanguard European Stock Index Fund experienced one of the highest outflows, losing $1.5 billion.

Of the top 10 U.S. fund families, State Street and Vanguard were the only firms to see flows into active strategies for the second consecutive month.

Fidelity and Franklin Templeton led active outflows in July, experiencing $8.9 billion and $3.8 billion in outflows, respectively. Vanguard led the way for passive inflows, gathering $21.1 billion in July.

Invesco Diversified Dividend Fund, which has a Morningstar Analyst Rating of Silver, led flows into active funds in July, garnering nearly $1.3 billion.

The highest inflow to a passive fund went to SPDR S&P 500 ETF, which took in more than $11 billion in July, representing the fund's highest monthly inflow since December 2014.