Mutual Funds, U.S. Stock Funds Lead January Inflows; ETFs Dip: Morningstar

Morningstar reported Monday that long-term mutual funds, after suffering outflows of $10.6 billion in December, collected $29.8 billion in January 2011, while stock funds experienced their best month since February 2006 with inflows of $15.8 billion after an eight-month run of outflows.

ETF inflows dropped slightly to $11.3 billion in January after collecting $18.4 billion in December. As of the end of 2010, assets under management exceeded $1 trillion. U.S. stock ETFs drove inflows in January with $9.9 billion, Morningstar reports, despite being down 50% month over month. In December, U.S. stock ETFs brought in $17.2 billion.

Taxable-bond ETFs gained $2.9 billion in January, the month's second highest inflows by asset class.

International stock ETFs had the second highest inflows in 2010 among ETF assets classes, Morningstar reports, but saw modest outflows in January, losing $491 million.

Commodities ETFs, especially precious metals, led outflows, losing $1.7 billion. Futures-based broad agricultural commodities funds experienced some inflows.