CHICAGO, Nov. 10, 2010 /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 October 2010. Investors contributed $26.8 billion to long-term mutual funds in
October, nearly twice the assets added in September. Every asset
class other than U.S. stock saw inflows during the month, but the
pace of outflows from domestic-equity funds slowed. Redemptions of
$6.3 billion from U.S. stock funds in
October were much lower than outflows of $18.3 billion during the previous month. U.S.
ETFs saw inflows of $13.1 billion in
October which, along with market appreciation, pushed industry
total net assets to $944.7
billion.
Additional highlights from Morningstar's report on mutual
fund flows:
- International-stock funds and balanced funds experienced their
best month since April, with inflows of $5.7
billion and $2.3 billion,
respectively. Outflows continued for money market funds, as
investors redeemed $16.6 billion in
October. Although the exodus has slowed, money market funds' share
of total mutual fund assets has dropped to 25.7% from 33.4% over
the past year.
- Diversified emerging-markets funds took in $2.3 billion in October, accounting for roughly
half the inflows into international-stock funds. Vanguard Total
International Stock Index Fund saw inflows of $10.7 billion after Vanguard announced that the
fund would replace Vanguard Emerging Markets Stock Index Fund,
Vanguard European Stocks Index Fund, and Vanguard Pacific Stock
Index Fund in its target-date lineup and in three funds of
funds.
- Inflows into overall long-term bond funds have remained tepid,
but the quest for yield has benefitted high-yield taxable-bond
funds and, to a lesser extent, municipal-bond funds at the expense
of short-term bond funds. Taxable-bond funds had solid inflows
overall of $20.6 billion, but
short-term bond funds have been supplanted in the rankings by
world-bond and multisector bond funds, which absorbed $3.7 billion and $3.1
billion, respectively, in October. Municipal-bond funds took
in $1.8 billion in October, but
monthly inflows have been declining since September 2009.
- Dimensional Fund Advisors broke into the top-10 list of fund
families by assets under management in October. Boosted by investor
preference for passively managed funds, the firm has taken in
nearly $7.5 billion in 2010, and
about one-third of those assets flowed to the firm's
emerging-markets equity funds.
Additional highlights from Morningstar's report on ETF
flows:
- International stock topped all ETF asset classes in October
with inflows of $9.2 billion. More
than $25.1 billion has flowed into
diversified emerging-markets ETFs since the beginning of the year,
which represents 32% of all ETF inflows and nearly 76% of total net
inflows into international-stock ETFs.
- U.S. stock ETFs gathered assets of $3.5
billion during the month despite outflows for some of the
largest funds in the group. In addition to dividend-paying ETFs and
other high yielding strategies, investors allocated capital to ETFs
with exposure to technology and financials, two cyclical sectors
that could potentially benefit from the effects of QE2.
- Commodities ETFs, the only asset class to see outflows in
October, lost assets of $197 million.
Outflows of $486 million from SPDR
Gold Trust GLD and $331 million from
United States Oil USO offset inflows into silver and natural gas
ETFs.
- Vanguard has collected roughly 39
cents of every dollar in net inflows to U.S.-listed ETFs
this year and introduced 16 new ETFs to the market in 2010.
Vanguard's ETF assets increased by more than 72% over the past
year, raising the firm's market share to 14.5% of industry
assets.
To view the complete report, please visit
http://www.global.morningstar.com/octflows10. 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 370,000 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 26 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.