Redemptions of nearly $15.0 billion from domestic-equity funds, the largest monthly outflow since March 2009, contributed to outflows of $13.2 billion for all long-term mutual funds in May, Morningstar reported in a fund flows update on Friday, June 11.
Morningstar’s report on estimated U.S. mutual fund and exchange-traded fund asset flows through May 2010 also credited market uncertainty about Europe’s troubles for international stock fund outflows.
“The European economic woes that dominated the headlines throughout the month brought an end to 13 consecutive months of steady inflows for international-stock funds. The asset class saw outflows of nearly $6.0 billion in May,” the Chicago-based research firm said in a release.
Despite the market malaise, U.S. ETFs saw inflows of $4.8 billion in May, bringing year-to-date net inflows to $24.7 billion, according to the Morningstar Direct Fund Flows Update. The ETF industry had roughly $792.6 billion in assets as of the end of May.