Mutual funds and ETFs suffered their biggest outflows in almost three years in June.
Long-term funds and ETFs experienced net outflows of $22 billion, the most since August 2015 with U.S. equity funds the biggest losers, according to Morningstar Direct’s latest asset flows report. They experienced net outflows of $20.8 billion in June, more than reversing the $20.7 billion in net inflows in May.
International equity funds followed, losing a net $9.78 billion, their worst drawdown since 2008. Net flows also fell for allocation funds (-$4.87 billion), alternative funds (-$2.5 billion), commodities funds, (-$1.7 billion) and sector equity funds (-$565 million).
Only bond funds and ETFs — taxable and municipal — experienced inflows in June, led by ultrashort funds, which took in $5.5 billion, about one-third the $15.5 billion inflows in taxable bond inflows.
Active and Passive Funds See Outflows
Both active and passive U.S. equity funds saw withdrawals in June, which hasn’t happened since March, but withdrawals from active equity funds were roughly five times the size of withdrawals from passive funds: $17.1 billion compared with $3.7 billion.