Following a first quarter that saw riskier assets outperform, and a second quarter marked by a flight to Treasuries, investors would do well to review the suitability of their current portfolio allocations, says Morningstar's director of fixed-income research.
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.
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Though performance has been volatile this year, investors have thus far been willing to bet on growthier areas of the stock and bond markets, says Morningstar associate director of fund analysis Shannon Zimmerman.
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