Investors Embrace Bond Funds, Shun International Equity
Brexit concerns prompt investors to redeem international equity funds, both active and passive, while taxable-bond funds bring in $15 billion and commodity inflows stage a comeback.
The taxable-bond Morningstar category group received the highest inflow of all category groups in May: $15.4 billion. The taxable-bond category saw its inflow almost evenly distributed between active and passive funds.
Municipal-bond funds took second place, with an $8.2 billion inflow. For muni-bond funds, active funds received the bulk of the inflows, which makes sense given the scarcity of passive muni-bond fund options.
Alina Lamy does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.