US Fund Flows: July 2024 Flows Heat Up

US funds collected $83 billion in July, their second-strongest month of the year so far. Despite market volatility, equity category groups generally enjoyed moderate inflows, while fixed-income groups took in larger sums. More broadly, eight of the 10 category groups saw positive flows in July.

The charts below illustrate which direction the money is flowing for a variety of fund types. For a more complete analysis, download the full monthly report from Morningstar’s Adam Sabban and Ryan Jackson.

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Let’s get into it.

Investors poured $122 billion into US ETFs in July. That was the second-highest monthly total on record behind $128 billion in December 2023 and the fourth month ever with inflows north of $100 billion. Meanwhile, mutual funds shed $39 billion in July.

Taxable-bond funds are pulling in money like it’s 2021. That December marked the cohort’s high-water mark before outflows and bad performance shrank its treasure chest. But after a run of inflows and steadier returns, taxable-bond funds have come nearly all the way back. They totaled $5.57 trillion at the end of July—only $2 billion short of the December 2021 total.

Vanguard has raked in $118 billion in 2024. Vanguard S&P 500 ETF VOO alone has claimed an incredible $54 billion, which already exceeds the annual inflow record for any fund. The exhibit below charts VOO’s campaign against the five best calendar years of inflows ever. It’s almost certain to set the new inflow record. The question now becomes: by how much?

For more comprehensive analysis and commentary on US Fund Flows, download this month’s full report. Additional topics include:

• Bond Investors Want Some Credit
• Momentum Is Building for Municipal Bonds
• Investors Go for the Gold in July
• Small Caps Stand Out
• Another U-Turn for International-Equity Funds
• Alternatives Take Off; Nontraditional-Equity Funds Remain Strong
• Sustainable Funds’ Slump Extends Into July

Can’t get enough fund flows data? Check out Morningstar’s Ultimate Guide to Fund Flows.

This article is adapted from the Morningstar U.S. Fund Flows report for June 2024. Download the full report here.

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