ETF and open-end asset flows combined show a strong preference for bonds, emerging markets, and passive funds, while active U.S. stock fund managers and money market funds have suffered the brunt of outflows.
Given these funds' wide latitude, investors should move slowly (if they move at all) into these offerings at this point, says Morningstar's Eric Jacobson.
Although the default picture has improved in high yield, junk bonds could still get clocked if the economy falters or we face a double-dip recession, says Morningstar's Eric Jacobson.
Equity funds have experienced outflows over the last five years, but the exodus is not as extreme as it's portrayed.
Despite equity markets having one of the best Octobers in recent history, U.S. stock funds continue to see robust outflows that could eclipse what we saw in 2008, says Morningstar's Kevin McDevitt.
Although investors may remain broadly skeptical of equity markets, asset flow data suggest they could be taking more risk than expected in other asset classes.
As yields rose, both taxable- and municipal-bond funds saw record monthly redemptions in absolute terms in June.
October data show continued inflows for bonds (including riskier fixed-income assets), while investors withdrew money from U.S. stock mutual funds and ETFs.
Market gains have been the only driver of equity AUM growth for most of the asset managers.
Morningstar's Christine Benz provides some useful tips for those getting their feet wet in fixed-income investing.
Some Morningstar.com readers are rethinking their fixed-income exposure, while others are sticking with their plans.
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