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US Fund Flows: June Inflows Round Out a Mediocre First Half of 2024
Long-term US mutual funds and exchange-traded funds gathered $44 billion in June, in line with their monthly average over the first half of the year.
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Key Takeaways
Taxable-bond funds reeled in $230 billion in the first half, which represented about 87% of net US fund flows.
Despite lackluster flows for US equity funds, S&P 500-tracking funds continued to rake in assets in 2024.
Technology funds had a resurgence in the first half of 2024, invoking memories of 2020.
US funds gathered $44 billion in June, a step back from May’s intake but in line with their trend of inflows, which began in November 2023. For the first half of 2024, US funds collected $266 billion, significantly stronger than the second half of 2023 when they netted only about $30 billion, but much less than during 2020 and the first half of 2021.
Total long-term flows had a 1% organic growth rate in the year’s first half, which is an average showing relative to history since Morningstar began collecting flow data in 1993. Some category groups fared better than others. Taxable-bond funds grew at a 4.4% rate, which is an above-average pace relative to history. Alternative and nontraditional-equity funds also posted strong results. Conversely, equity category groups had subpar showings.
The charts below illustrate which direction the money is flowing for a variety of fund types. For a more complete analysis, download the full monthly report from Morningstar’s Adam Sabban and Ryan Jackson.
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Let’s get into it.
Taxable-Bond Funds Pave the Way in First Half
Taxable-bond funds raked in $230 billion in the first half of 2024. That represented nearly 87% of all US fund flows. Bond index funds held steady with a fresh $118 billion of first-half inflows. But the $112 billion that rushed into active funds—whose flows have been far more variable—powered the taxable-bond cohort to its best semiannual stretch since the first half of 2021.
S&P 500 Trackers Still the Stars
While US equity funds gathered a relatively low sum in the first half of 2024 relative to their huge asset base, S&P 500-tracking funds continued to do well. Indeed, investors seem to plow dollars into these vehicles in both good times and bad. Over the past three years, they suffered outflows in just seven months. S&P 500 trackers took in $69 billion during the first half of 2024, while all other US equity funds collectively shed roughly $44 billion.
Buying the Rally in Growth Stocks
With mega-cap tech stocks outshining the rest of the US market, investors have gravitated toward funds featuring these companies. Technology funds raked in over $17 billion in the first half of 2024—equivalent to an organic growth rate better than anything since 2020’s first half. Large-growth funds, which have seen outflows for years, enjoyed inflows in both May and June. Certain leveraged single-stock ETFs have also taken in huge sums.
More on Fund Flows from Morningstar
For more comprehensive analysis and commentary on US Fund Flows, download this month’s full report. Additional topics include:
- Active Bond Funds Strike Back in 2024; Equity Funds Don’t
- Bond Investors Broaden Out
- June a Glimmer of Light for International-Equity Funds
- More Inflows for Municipal-Bond Funds
- Diversifiers Continue to Shine
- Bitcoin ETFs Tap the Brakes in Second Quarter
- Sustainable Funds Remain Out of Favor
- Flexible Fidelity Notches a Stellar First Half
Can’t get enough fund flows data? Check out Morningstar’s Ultimate Guide to Fund Flows.
This article is adapted from the Morningstar U.S. Fund Flows report for June 2024. Download the full report here.
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