Massive Mutual Fund Outflows Mark Month of June

401k, retirement, mutual funds, Morningstar

Where'd it all go?

Normal market movement, or a signal of something greater?

A massive exodus from long-term, open-end mutual funds and ETFs occurred in June, the greatest outflows since August 2015.

Chicago-based research behemoth Morningstar reported that investors cut risk as money moved into bond funds.

Totaling approximately $22.1 billion, the bulk of the outflows stemmed from U.S. equity, which saw $20.8 billion leave.

Passive strategies still retained their dominance, as $17.1 billion moved from active funds and $3.7 billion from passive.

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.

Highlights from the report include:

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