Slideshow Funds with the biggest redemptions lost $86B this year

Published
  • August 01 2018, 3:35pm EDT
Mutual funds and ETFs with the largest outflows this year lost a combined $86.6 billion. Those products collectively hold $1.2 trillion in client assets.

Despite redemptions from emerging markets and international equity, high-yield bond and large-value funds reported the largest combined year-to-date outflows at $23.1 billion and $21.4 billion, respectively, according to Morningstar.

The biggest takeaway, Morningstar Senior Fund Analyst Kevin McDevitt says, is the relative resilience of international equity flows versus U.S. stocks.

“U.S. equity funds have had about $21 billion in year-to-date outflows, despite the S&P 500 being up 6.5% or so,” McDevitt says. "International equity funds have collected about $86 billion in inflows, despite foreign markets being flat to slightly down year-to-date."

The third hardest hit among Morningstar's categories, U.S. Fund Mid-Cap Value, reported $9.3 billion in outflows year-to-date, the research company's data show.

Meanwhile, long-term mutual funds and ETFs reported $22.1 billion in redemptions in June, the biggest one-month outflow since August 2015, McDevitt wrote in a monthly report on asset flows. U.S. equity funds lost a combined $20.8 billion to redemptions, according Morningstar. Sector-equity, international-equity, allocation, alternative and commodity funds all had net outflows. Only taxable-bond and municipal-bond funds reported inflows.

Most of the outflows this year have come from index offerings. At $16.9 billion, the S&P 500 tracker SPY reported the largest redemptions this year. SPY, iShares Core S&P 500 ETF (IVV), Vanguard Institutional Index (VINIX), Invesco QQQ Trust (QQQ), and Vanguard Total Stock Market Index (VTSMX) reported combined year-to-date outflows of $14.7 billion, according to Morningstar data.

The industry’s top 50 fund families, however, recorded a combined $170.5 million in inflows over the same period, McDevitt says.

“Don’t assume that flows blindly follow market performance,” McDevitt warns advisors. “Also, don’t get too wrapped up in monthly flows; focus on broader trends over quarters and years.”

Scroll through to see the 20 funds with the largest outflows. Funds with investment minimums higher than $100,000 were excluded, as were leveraged and institutional funds. We also show year-to-date returns, assets and, as usual, expense ratios for each fund. All data from Morningstar Direct.
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20 American Funds Invmt Co of Amer A (AIVSX)

YTD Flows: ($2,470.16)
YTD Returns: 5.86%
Expense Ratio: 0.58%
Net Assets (millions): $94,476.45
Front Load: 5.75%

19 T. Rowe Price Retirement 2030 (TRRCX)

YTD Flows: ($2,477.78)
YTD Returns: 3.55%
Expense Ratio: 0.59%
Net Assets (millions): $24,744.96

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18 Fidelity Large Cap Stock (FLCSX)

YTD Flows: ($2,486.58)
YTD Returns: 5.50%
Expense Ratio: 0.67%
Net Assets (millions): $2,910.69

17 American Funds Capital Income Bldr A (CAIBX)

YTD Flows: ($2,599.53)
YTD Returns: -1.27%
Expense Ratio: 0.59%
Net Assets (millions): $106,065.03
Front Load: 5.75%

16 Oakmark International Investor (OAKIX)

YTD Flows: ($2,606.64)
YTD Returns: -5.99%
Expense Ratio: 0.95%
Net Assets (millions): $45,367.16

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15 American Funds Income Fund of Amer A (AMECX)

YTD Flows: ($2,750.84)
YTD Returns: 0.96%
Expense Ratio: 0.56%
Net Assets (millions): $109,833.54
Front Load: 5.75%

14 WisdomTree Japan Hedged Equity ETF (DXJ)

YTD Flows: ($2,764.87)
YTD Returns: -4.88%
Expense Ratio: 0.48%
Net Assets (millions): $6,050.64

13 T. Rowe Price Retirement 2020 (TRRBX)

YTD Flows: ($2,772.25)
YTD Returns: 2.48%
Expense Ratio: 0.63%
Net Assets (millions): $21,689.74

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12 SPDR Blmbg Barclays High Yield Bd ETF (JNK)

YTD Flows: ($2,862.82)
YTD Returns: 0.19%
Expense Ratio: 0.40%
Net Assets (millions): $9,772.00

11 American Funds Growth Fund of Amer A (AGTHX)

YTD Flows: ($2,872.79)
YTD Returns: 13.61%
Expense Ratio: 0.64%
Net Assets (millions): $198,512.25
Front Load: 5.75%

10 T. Rowe Price Equity Index 500 (PREIX)

YTD Flows: ($2,966.49)
YTD Returns: 7.45%
Expense Ratio: 0.21%
Net Assets (millions): $27,794.01

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9 iShares iBoxx $ High Yield Corp Bd ETF (HYG)

YTD Flows: ($3,314.06)
YTD Returns: 0.96%
Expense Ratio: 0.49%
Net Assets (millions): $15,365.14

8 iShares iBoxx $ Invmt Grade Corp Bd ETF (LQD)

YTD Flows: ($3,874.58)
YTD Returns: -3.43%
Expense Ratio: 0.15%
Net Assets (millions): $34,353.46

7 iShares MSCI Eurozone ETF (EZU)

YTD Flows: ($4,152.28)
YTD Returns: -0.98%
Expense Ratio: 0.49%
Net Assets (millions): $10,427.82

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6 iShares Russell 1000 Value ETF (IWD)

YTD Flows: ($4,295.68)
YTD Returns: 1.35%
Expense Ratio: 0.20%
Net Assets (millions): $36,926.89

5 T. Rowe Price Growth Stock (PRGFX)

YTD Flows: ($4,504.81)
YTD Returns: 16.20%
Expense Ratio: 0.67%
Net Assets (millions): $57,872.22

4 iShares MSCI Emerging Markets ETF (EEM)

YTD Flows: ($5,402.33)
YTD Returns: -4.79%
Expense Ratio: 0.69%
Net Assets (millions): $31,714.47

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3 T. Rowe Price New Income (PRCIX)

YTD Flows: ($5,693.96)
YTD Returns: -1.76%
Expense Ratio: 0.54%
Net Assets (millions): $28,300.84

2 iShares MSCI EAFE ETF (EFA)

YTD Flows: ($8,877.22)
YTD Returns: -1.01%
Expense Ratio: 0.32%
Net Assets (millions): $72,013.33

1 SPDR S&P 500 ETF (SPY)

YTD Flows: ($16,888.14)
YTD Returns: 7.50%
Expense Ratio: 0.09%
Net Assets (millions): $277,880.50