Morningstar is out with its monthly tally, and passive equity is once again energized.
In August, investors placed an estimated $13 billion into passive U.S. equity funds, compared with outflows of $14.1 billion in the previous month.
On the active front, investors pulled $14.4 billion, compared with $11.2 billion of outflows reported for July.
The Chicago-based research behemoth also found:
- Long-term flows to open-end and exchange-traded funds dipped to an estimated $22.2 billion in August 2018 following July’s $32.1 billion.
- Taxable-bond funds continue as the leading category group in August with $19.1 billion in inflows, although this was down from July’s $25.2 billion.
- Within Morningstar categories, ultrashort-bond was the most popular with $9.7 billion in inflows, the category’s greatest inflows in at least a decade.
- The large-value category was the least popular, with approximately $2.3 billion in outflows.
- Among top U.S. fund families, iShares posted the greatest inflows, with $15.8 billion.
- Other firms with top inflows include Vanguard and J.P. Morgan, with $8 billion and $4.3 billion, respectively. State Street Global Advisors saw approximately $8.2 billion in outflows in August, more than double any other firm. Behind State Street, Harbor, Franklin Templeton, and Columbia saw the highest outflows with $2.9, $2.2, and $1.7 billion, respectively. Each saw notable outflows from their active strategies with minimal cushioning from passive offerings.
- Among all U.S. open-end mutual funds and ETFs, Bridge Builder Core Plus Bond saw the most inflows of all active strategies at $1.6 billion. Harbor International, with a Morningstar Analyst Rating of Bronze, saw $2.6 billion in outflows, more than any other active fund.
- Fidelity’s newly launched zero-fee funds had their first full month of flows data. Fidelity Zero Total Market Index and Fidelity Zero International Index had inflows of $754 and $234 million, respectively.
With more than 20 years serving financial markets, John Sullivan is the former editor-in-chief of Investment Advisor magazine and retirement editor of ThinkAdvisor.com. Sullivan is also the former editor of Boomer Market Advisor and Bank Advisor magazines, and has a background in the insurance and investment industries in addition to his journalism roots.
