US Mutual Funds And ETFs Had Record Monthly Inflows03.19.2021
Morningstar, a leading provider of independent investment research, reported estimated U.S. mutual fund and exchange-traded fund (ETF) flows for February 2021. For the month of February, long-term mutual funds and ETFs collected a record $144 billion. ETFs collected approximately $92 billion, driven by a move into equity funds, while open-end funds took in $53 billion, led by flows into fixed-income strategies.
Morningstar’s report about U.S. fund flows for February 2021 is available here. Additional highlights from the report include:
- Interest rate- and commodity-sensitive categories, such as financial and natural resource equity funds and inflation-protected bond funds, saw sharp organic growth. For example, natural resource funds, which tend to focus on materials stocks, took in nearly $2.5 billion, the highest monthly inflow in the past decade. Inflation-protected bond funds collected nearly $7 billion in February, a record for the category.
- Among U.S. category groups, U.S. equities took in a record $38 billion in February, almost recouping January’s outflows. Large-blend funds took in the most assets of any category at $22 billion.
- Sector equity funds attracted a record monthly inflow of $25 billion. Technology-themed funds led the way, gathering over $7 billion. Technology funds’ month-over-month organic growth rate of 2.5% was the highest since November 2015.
- Taxable bonds had another strong month in February, taking in approximately $57 billion for the month, bringing their total over the trailing 12 months to $493 billion, the most by far of any category group.
- Among fund families, Vanguard had approximately $37 billion of inflows, of which $34 billion went to passive strategies, while iShares followed with inflows of $16 billion. American Funds, an active manager, took in nearly $3 billion, with $1.6 billion entering American Funds Bond Fund of America.
Justin Chapman will lead the Digital Assets and Financial Markets group.
BNP Paribas Asset Management launched its first European ESG ETF Barometer survey.
By Greta Zhou and Andy Cheung, APAC AES, Credit Suisse
The ETF provides a way for investors to potentially profit from a decline in the price of bitcoin.
With Julien Messias, Founder, Head of Research & Development, Quantology Capital Management