Tue, 23 May 2017
Investors have been voting with their feet for low-cost funds, bringing down average fees again in 2016.
May flows data show investors are putting money to work in nontraditional fixed-income holdings, as well as emerging - markets equities, for perceived better returns.
As yields rose, both taxable- and municipal- bond funds saw record monthly redemptions in absolute terms in June.
Fund flows during the first quarter revealed that investors moved from more defensive to higher-yielding bond funds , and flows into passive bond funds picked up.
The fund giant saw an executive-management shuffle, ultra-short- bond fund launch, new lower-touch advisory service, and continued inflow domination.
Income-hungry investors sought out niche fixed-income funds like bank-loans and non-traditional bonds in the first quarter, while the so-called great rotation into stocks is not yet confirmed.
As rising rates and emerging markets lose momentum, fund investors are eyeing nontraditional fixed-income categories and European and Japanese equities.
Morningstar's Russ Kinnel, Sarah Bush, and Christine Benz highlight their top fund picks for domestic and foreign equity, core bond , inflation-protected securities, and much more.
Vanguard's Ken Volpert cautions investors about a rise in short-term rates, and also offers his thoughts on the U.S. debt ceiling as well as Vanguard's TIPS, international- bond , and total bond market funds.
Interest in dividend-paying stocks and bonds remained high as the market eyed the Fed.
Some Morningstar.com readers are rethinking their fixed-income exposure, while others are sticking with their plans.
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