Investors Embrace U.S. Stocks, Sort Of

U.S. equity funds enjoyed an $8.7 billion inflow in October, which is impressive for a category group that's usually in outflow territory. Investors poured $27.6 billion into passive U.S.-equity funds last month, more than doubling the previous month's $12.7-billion inflow. Active U.S.-equity funds, meanwhile, continued to see outflows.

International-equity flows more than doubled, as well, to $22.2 billion in October from $9.8 billion in September.

Significant as U.S.- and international-equity flows may be, they still pale in comparison with taxable bond's spectacular winning streak. Taxable bond maintained its top spot with $39.1 in net new flows, divided almost evenly between the passive and active side.

Other notable fund flow trends in October included:

• Intermediate-term bond and foreign large blend were once again the two categories with the largest inflows. Large value and large growth, although they remained on the bottom-flowing list overall, had at least the consolation of positive flows on the passive side.
• On the active side, JPMorgan stole the leader position from PIMCO in October. Fidelity and Franklin Templeton sustained outflows from their active funds.
• The U.S. asset management industry is on track to establish a new record: Year-to-date flows for the entire industry are larger than any other annual flow since 1993.