Amid Value “Exodus,” Fund Flows Drop

Amid Value “Exodus,” Fund Flows Drop

After the torrid pace set in the first half of this year, monthly flows into long-term mutual funds and ETFs dropped roughly 33% from June to July. This according to a new report from Morningstar that is discussed in an article in CityWireUSA.

Large Value and Small Value fund categories, as well as value-oriented sector equity funds, all endured outflows, with Financials giving back $3.1 billion after a solid first-half. However, mid-cap Growth funds also sustained $3.5 billion in outflows. So while value funds remain ahead, it’s still a rocky road on both a month-to-month and quarterly basis, the article contends.

Taxable Bond funds, ETFs and active funds all continued their run of monthly inflows, but the latter’s $14 billion in July was dwarfed by the $54.4 billion that investors poured into passive products. The passive nature of the ETF market continues “to dominate US equity fund flows,” the article quotes from the Morningstar report.

Among fund families, though its Institutional Index took a big hit, Vanguard still reigned supreme, owning the top three most popular funds in July, while Fidelity ranked second.

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