Morningstar - Q3 2023 - 79
FUND FLOWS SPOTLIGHT
Historic Outflows From Large-Value Funds
Long-term U.S. mutual funds and exchangetraded
funds shed roughly $23 billion in May 2023,
continuing their lackluster start to the year.
The losses weren't across the board: Taxable-bond
funds collected over $18 billion. U.S. equity
funds, however, bled about $27 billion in May-
the seventh consecutive month of outflows.
The Large-Value Category's Organic Growth Rate
1.5%
1.0
0.5
-0.5
-1.0
-1.5
01/2009
Source: Morningstar Direct.
01/2011
01/2013
01/2015
01/2017
01/2019
01/2021
05/2023
Amid a resurgence in large-cap growth stock
performance, investors may be rethinking their
allocations to value funds in particular.
Large-value funds suffered their worst month
of flows on record in May, dropping $15.1 billion.
As a percentage of beginning assets, it was
their worst month since March 2009, a month
that marked the bottom of the market during
the financial crisis.
Adam Sabban, CFA, is a senior manager research analyst,
equity strategies, at Morningstar Research Services LLC.
Ryan Jackson is a manager research analyst, passive
strategies, at Morningstar Research Services LLC.
Active Versus Passive Fund Strategies The percentage of U.S. actively managed funds that outperformed their respective Morningstar Style Index.
< 20%
Percentage of Actively Managed Funds Outperforming Index:
1-Year
33.7%
12.6
57.8%
16.9
12.2%
30.3
3-Year
50.4%
14.6
29.0%
14.6
82.9%
5.9
20 to 40%
> 40%
Index Returns (06/30/2023)
5-Year
29.4%
9.1
16.3%
12.3
72.1%
10.3
83.7%
7.8
36.7%
15.6
40.3%
19.6
44.2%
17.0
35.1%
15.0
62.1%
5.9
63.4%
6.3
19.3%
9.6
26.3%
10.0
74.0%
Value
7.9
4.4%
Core
15.6
28.6%
17.4
31.4%
Growth
Value
20.2
37.7%
Core
15.3
81.1%
2.4
57.7%
Growth
Value
4.7
40.0%
Core
morningstar.com/products/magazine
6.1
88.4%
3.9
Growth
79
Organic Growth Rate
Small
Mid
Large
Small
Mid
Large
Small
Mid
Large
https://www.morningstar.com/authors/2338/adam-sabban
https://www.morningstar.com/authors/2385/ryan-jackson
http://www.morningstar.com/products/magazine
Morningstar - Q3 2023
Table of Contents for the Digital Edition of Morningstar - Q3 2023
Contents
Morningstar - Q3 2023 - Cover1
Morningstar - Q3 2023 - Cover2
Morningstar - Q3 2023 - Contents
Morningstar - Q3 2023 - 2
Morningstar - Q3 2023 - 3
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Morningstar - Q3 2023 - 5
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Morningstar - Q3 2023 - Cover3
Morningstar - Q3 2023 - Cover4
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