New Year, Not-So-New Trends in Fund Flows
January fund flows set a new monthly record with taxable bond funds continuing to dominate.
Flows for all category groups totaled $128.1 billion in January, setting a monthly record. The previous largest flow, $116.2 billion, occurred in January 2013.
The taxable bond category topped all categories, receiving a total inflow of $47.0 billion, almost equally distributed between active and passive. International equity attracted $41.9 billion, with the majority of those flows going to passive funds. In fact, the international equity category group attracted its largest monthly flow since April 2015.
Passive U.S. equity funds saw their largest monthly inflow since December 2016, attracting $41 billion; active U.S. equity funds saw outflows of $24 billion.
Among other trends last month:
- Large blend was the overall top-flowing Morningstar category in January despite a $7.3 billion outflow on the active side.
- High-yield bond funds experienced outflows for the fourth consecutive month.
- On the active side, American Funds rallied in January with a $7.9 billion inflow.
Download the complete Asset Flows Commentary here.
United States