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Commentary

After a Strong Start to Year, U.S. Fund Flows Take a Dive

Investors pulled nearly $2 billion from long-term funds in May.

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This is an excerpt from the Morningstar Direct U.S. Fund Flows Commentary for May 2019. The full report can be downloaded here.

U.S. fund flows were weak across the board in May, halting a string of strong months to start 2019. Investors pulled nearly $2 billion from long-term funds (open-end and exchange traded funds) in the worst month since outflows spiked to $91 billion during last December's market turmoil. Perhaps spurred by declining equity markets, investors turned cautious. (The average U.S. large-blend equity fund dropped 6.3% in May.) Money market funds were the primary beneficiaries, collecting about $82 billion as investors fled to safety. It was the group's best showing since last November's $84 billion haul and the second-best over the past 10 years.

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Kevin McDevitt does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.