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US Fund Flows: March Sees Strongest Inflows in Nearly 3 Years
Investors plowed about $89 billion into US mutual funds and ETFs in March and the first quarter of 2024 ended with $189 billion of inflows.
Key Takeaways
US equity funds collected $32 billion, led by flows into passive strategies.
Tech funds’ resurgence helped propel the sector-equity category group to a quarterly inflow following a stretch of outflows.
Spot bitcoin ETFs raked in $27 billion in their debut quarter, closing it with $35 billion in assets.
The $89 billion invested into US mutual funds and ETFs in March was the highest total since August 2021. For the first quarter, US funds gathered $189 billion, also the most since 2021. Demand was broad-based in March as all but two of the 10 category groups enjoyed inflows.
US equity funds saw $32 billion of inflows in March, the second-highest total since May 2022. As usual, index funds led the way with a $46 billion intake. Active US equity funds shed about $14 billion. Six of the nine categories in the group enjoyed inflows, including $1.2 billion to large-growth funds—their first monthly inflow since 2022.
The charts below illustrate which direction the money is flowing for a variety of fund types. For a more complete analysis, download the full report from Morningstar’s Adam Sabban and Ryan Jackson.
This data was sourced from Morningstar Direct. Not a user? Get a free trial of Direct.
On to the charts.
Tech Continues to Carry Sector-Equity Flows
It’s been a rollercoaster run for sector-equity funds. They enjoyed strong demand in 2020 and 2021 but then came crashing down to earth. The cohort suffered net outflows in seven consecutive quarters at one point, but that ended in 2024’s first quarter. Tech funds’ resurgence was a big reason why. They collected $4.3 billion in March and $12.9 billion in the first quarter.
Bitcoin ETFs Show Staying Power
The “new nine” spot bitcoin ETFs have made a splash. Since launching in January, they raked in nearly $27 billion and swelled to $35 billion in assets. IShares’ offering represents about half of that, making it the early winner of the bitcoin-ETF arms race. The loser? Grayscale Bitcoin Trust, the incumbent whose hold on the market evaporated when new competition went online.
More on Fund Flows from Morningstar
For more comprehensive analysis and commentary on US Fund Flows, download this month’s full report. Topics include:
- US Equity Funds Put Up a Strong Month in March
- Betting on Breadth
- Foreign-Stock Flows Still Frozen in Winter
- Taxable-Bond Funds Cap Off Stellar Quarter
- The Arrow Is Pointing Up for Target-Maturity Funds
- Municipal-Bond Flows Round Back Into Form
- A New Covered-Call Fund Grabs the Baton
- Momentum Remains Sluggish for Sustainable Funds
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 March 2024. Download the full report here.