Skip to Content
Commentary

Investors Flock to Ultrashort Bond Funds

Taxable-bond funds continued to enjoy the greatest inflows in August.

  • Long-term flows to U.S. open-end and exchange-traded funds dipped to an estimated $22.2 billion in August 2018 following July's $32.1 billion
  • Taxable-bond funds continued to dominate with $19.1 billion in inflows, although this was down from July's $25.2 billion. The ultrashort bond Morningstar Category was the most popular in the taxable-bond group for the sixth consecutive month, collecting $9.7 billion, the category's greatest haul in at least a decade.
  • Active-fund outflows continued, but active taxable-bond funds have slowed the pace of outflows in 2017 and 2018.
  • iShares led all families with $15.8 billion of inflows, followed by $8.0 billion for Vanguard.

Trends in Long-Term Asset Flows Continue
August's $22.2 billion in long-term flows takes the year-to-date tally to about $262 billion, a $33 billion monthly average. If that pace is maintained, 2018 will end with about $393 billion in long-term inflows. This would be in line with the $389 billion average seen from 2009 to 2017.

Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.

We’d like to share more about how we work and what drives our day-to-day business.

We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.

How we use your information depends on the product and service that you use and your relationship with us. We may use it to:

  • Verify your identity, personalize the content you receive, or create and administer your account.
  • Provide specific products and services to you, such as portfolio management or data aggregation.
  • Develop and improve features of our offerings.
  • Gear advertisements and other marketing efforts towards your interests.

To learn more about how we handle and protect your data, visit our privacy center.

Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.

To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.

Read our editorial policy to learn more about our process.