September was a mixed month for mutual fund and ETF fund flows but not for Vanguard, which took in more funds than any other fund family, according to Morningstar’s latest fund flow report.
Vanguard’s inflows totaled $11.7 billion in September and $29.1 billion for the third quarter, which it also led.
Unlike most other major asset managers except BlackRock, Vanguard saw inflows in both active and passive funds in September, boosted by its taxable bond fund flows, which collected a net $13.2 billion. (Morningstar adjusted Vanguard’s flow estimates to account for the $20 billion of assets from the Vanguard Total International Stock Index (VTIAX) that had been converted to a collective investment trust, which could have appeared as outflows.)
Following Vanguard in the competition for asset flows in September and the third quarter were BlackRock’s iShares and JPMorgan.
BlackRock’s iShares took in a net $3.7 billion in September, and its Core S&P 500 ETF had the greatest inflows of any other fund that month, equal to its $3.7 billion. Its international equity and taxable bond funds combined saw inflows of $2.5 billion. For the third quarter, BlackRock’s iShares took in a net $28.8 billion, within striking distance of Vanguard’s totals.
Like BlackRock and Vanguard, JPMorgan also saw strong inflows to its taxable bond fund. Its total net asset flows were $2.9 billion in September and $12.6 billion in the third quarter. Its 6.6% organic growth rate for the first three quarters of the year was the fastest among the 10 largest firms by total net assets, according to Morningstar.
On the flip side of asset flows was Dimensional Fund Advisors, which continued to hemorrhage assets in September and in the third quarter, leading the decline in fund flows among the top 10 U.S. fund families. DFA experienced net outflows of $4 billion and $10.2 billion, respectively, for September and the third quarter. Fidelity followed, with net outflows of $3.1 billion and $7.05 billion, respectively, with T. Rowe Price, not far behind. Its net asset flows declined $1.5 billion in September and $6.0 billion in the third quarter.
Overall, September was a mixed month for asset flows as mutual funds experienced net outflows of $22 billion while ETFs saw $13 billion in net inflows.
Money market funds, which had experienced strong inflows earlier in the year during the pandemic-fueled selloff, continued to experience outflows in September and the third quarter, of $117 billion and $223 billion, respectively.
U.S. and international equity funds also saw outflows in both periods while bond funds — both taxable and muni funds — experienced net inflows.
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