Where Are they Going?

The S&P 500 hit an all-time high in August. Investors ran out the door.

A record amount of money, more than $50 billion, left the building.

You might think that it’s a continued torrent of investors bailing on actively managed mutual funds, but that’s not at all the case. From Morningstar’s U.S. Fund Flows Batter Equity Funds in August (emphasis mine):

The hardest-hit equity style-box category was large blend. Those funds posted a record $32 billion of outflows, topping the previous record of $24 billion set in April 2020. It was also the category’s fifth consecutive month of outflows–the longest such streak in data going back to 1993. More than 70% of its August outflows came from passively managed funds. Nearly $10 billion left Vanguard Total Stock Market Index (VITSX), the largest fund in the United States by total assets, but market appreciation offset those redemptions and pushed the fund to nearly $1 trillion.

Meanwhile, investors can’t get enough of taxable bond funds with yields the size of Mugsy Bogues. Investors plowed $77 billion into the category in August. Go figure.

Source: 

U.S. Fund Flows Batter Equity Funds in August

This content, which contains security-related opinions and/or information, is provided for informational purposes only and should not be relied upon in any manner as professional advice, or an endorsement of any practices, products or services. There can be no guarantees or assurances that the views expressed here will be applicable for any particular facts or circumstances, and should not be relied upon in any manner. You should consult your own advisers as to legal, business, tax, and other related matters concerning any investment.

The commentary in this “post” (including any related blog, podcasts, videos, and social media) reflects the personal opinions, viewpoints, and analyses of the Ritholtz Wealth Management employees providing such comments, and should not be regarded the views of Ritholtz Wealth Management LLC. or its respective affiliates or as a description of advisory services provided by Ritholtz Wealth Management or performance returns of any Ritholtz Wealth Management Investments client.

References to any securities or digital assets, or performance data, are for illustrative purposes only and do not constitute an investment recommendation or offer to provide investment advisory services. Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Past performance is not indicative of future results. The content speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others.

The Compound Media, Inc., an affiliate of Ritholtz Wealth Management, receives payment from various entities for advertisements in affiliated podcasts, blogs and emails. Inclusion of such advertisements does not constitute or imply endorsement, sponsorship or recommendation thereof, or any affiliation therewith, by the Content Creator or by Ritholtz Wealth Management or any of its employees. Investments in securities involve the risk of loss. For additional advertisement disclaimers see here: https://www.ritholtzwealth.com/advertising-disclaimers

Please see disclosures here.