Morningstar reports U.S. mutual fund, exchange-traded fund flows

Morningstar, Inc., a leading provider of independent investment research, today reported estimated U.S. mutual fund and exchange-traded fund (ETF) flows for May 2021.

Long-term mutual funds and ETFs collected $83 billion during May, materially less than their $156 billion haul in March and $124 billion intake in April. Investors continued to favor passively managed strategies, pouring $71 billion into index-tracking funds.

Morningstar’s report about U.S. fund flows for May 2021 is available here. Additional highlights from the report include:

Taxable-bond funds took in $38 billion, the highest total among category groups but modest relative to inflows earlier in the year.

After taking in a record $54 billion in March, U.S. equity fund flows were quiet for the second consecutive month with just $211 million of inflows in May.

Large-value funds picked up about $13 billion, their second-highest monthly intake in Morningstar’s database which goes back to 1993.

International-equity funds gathered $23 billion, extending their streak of inflows to seven months.

Sector equity funds took in $6 billion, driven by inflows into passive funds that track cyclical equities such as financials and natural resources.

Bank-loan funds collected $3.7 billion, their sixth consecutive month of inflows after a long streak of outflows dating back to November 2018. Their year-to-date organic growth rate of 33% was the highest within the taxable-bond category group.

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