What You Need to Know
- Some $84 billion flowed into these funds and ETFs in October, up from $53 billion in September, the firm found.
- Although investors favored technology and cyclically oriented sector funds earlier this year, they haven't consistently embraced either since June.
- Strong demand for ESG funds continued in October: Funds with sustainability mandates had inflows of $4.9 billion.
Morningstar reported Thursday that $84 billion flowed into U.S. long-term mutual funds and ETFs in October, up from $53 billion in September, their lowest monthly intake of the year.
After hemorrhaging $7.5 billion in September, U.S. equity funds brought in $32 billion in October to lead all U.S. category groups. Passive large-blend funds powered the intake.
October flows into international equity funds amounted to approximately $15 billion, well behind their U.S. counterparts, which this category group has outpaced for much of 2021.
Sector-equity funds had inflows of some $6 billion in October, rebounding from a $700 million outflow in September. Morningstar noted that although investors favored technology and cyclically oriented sector funds earlier in the year, they have not consistently embraced either since June.