CHICAGO, Oct. 13 /PRNewswire/ -- Morningstar, Inc.
(Nasdaq: MORN), a leading provider of independent investment
research, today reported estimated U.S. mutual fund and
exchange-traded fund asset flows through September 2010. While long-term mutual funds saw
inflows of $14.3 billion during the
month, the U.S. equity outflows continued, reaching $16.3 billion despite the best September for
stocks in 71 years. The divergence in flows between
international-stock and domestic-equity funds also continued to
grow. Although international-stock funds saw modest inflows of
$600 million in the third quarter,
U.S. stock funds lost roughly $42.7
billion. Investors have pulled $80.9
billion from U.S. stock funds over the trailing 12 months,
but contributed nearly $34.3 billion
to international-stock funds—a difference of $115.2 billion. U.S. ETFs saw inflows of roughly
$25.4 billion in September, boosting
year-to-date inflows to $64.9
billion.
Additional highlights from Morningstar's report on mutual
fund flows:
- Taxable-bond funds enjoyed another strong month, with inflows
of $23.5 billion. After two months of
inflows, money market funds saw redemptions of $29.1 billion in September, bringing total
redemptions for the asset class to $873.5
billion since January
2009.
- Notwithstanding their volatile performance since the market
peaked in October 2007, investors
have steadily contributed assets to alternative funds. Bear-market
funds saw inflows of $3.5 billion
over the past three years despite annualized losses of 12.4
percent, and long-short funds attracted $21.8 billion in flows even though the average
fund dropped an annualized 3.6 percent.
- Although commodity funds have taken in nearly $7.5 billion in 2010, bringing overall assets to
$33.6 billion, investor sentiment may
be shifting from broad-basket commodity funds to equity
precious-metals funds. Equity precious-metals funds have been the
best-performing category over the last decade by far, earning an
annualized 24.3 percent through September. The category's inflows
of $692 million during the month
topped inflows of $654 million for
broad-basket commodity funds.
- While PIMCO and Vanguard continued to dominate inflows in
September thanks to their broad fixed-income offerings, Matthews
Asia funds attracted assets of nearly $800
million during the month. Reflecting investor preference for
non-U.S. equity exposure, the firm has absorbed $2.9 billion in 2010.
Additional highlights from Morningstar's report on ETF
flows:
- The most-popular ETF asset class in September was U.S. stocks,
with inflows of $16.7 billion. While
inflows into the heavily traded SPDR S&P 500 SPY and
PowerShares QQQ QQQQ bolstered assets for U.S. stock ETFs overall,
the predominant theme in the current environment is investor
appetite for dividends. iShares Dow Jones Select Dividend DVY and
Vanguard Dividend Appreciation VIG have seen a spike in demand in
recent months.
- While TIPS ETFs have seen outflows on deflationary concerns,
commodities, REITs, and dividend-paying ETFs have enjoyed
increasing popularity. REITs serve as a solid inflation hedge, and
iShares Dow Jones US Real Estate IYR and Vanguard REIT Index VNQ
saw $312 million and $371 million in net inflows in the third quarter,
respectively.
- Gold ETFs remained attractive in September, but iShares Silver
Trust SLV gathered assets of more than $421
million to lead precious-metals ETF flows during the
month.
- Strong demand for emerging-markets ETFs continued in September.
Of the $14.5 billion in inflows that
investors added to international-stock ETFs in the third quarter,
more than $12.5 billion, or 86
percent, went to ETFs covering broad emerging-market indexes.
Conversely, ETFs offering exposure to developed international
markets continued to experience outflows.
To view the complete report, please visit
http://www.global.morningstar.com/septflows10. For more information
about Morningstar Fund Flows, please visit
http://global.morningstar.com/fundflows.
About Morningstar, Inc.
Morningstar, Inc. is a leading provider of independent
investment research in North
America, Europe,
Australia, and Asia. The company offers an extensive line of
Internet, software, and print-based products and services for
individuals, financial advisors, and institutions. Morningstar
provides data on approximately 360,000 investment offerings,
including stocks, mutual funds, and similar vehicles, along with
real-time global market data on more than 4 million equities,
indexes, futures, options, commodities, and precious metals, in
addition to foreign exchange and Treasury markets. The company has
operations in 21 countries.
©2010 Morningstar, Inc. All rights reserved.
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Media Contact:
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or carling.spelhaug@morningstar.com
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SOURCE Morningstar, Inc.
Copyright . 13 PR Newswire