Active Fund Investors Dump UK and US Stocks

Passive investors are still buying UK and US equity ETFs while active investors are selling out of these exposures quick, Morningstar data shows

Karen Kwok 26 May, 2016 | 10:35AM

Active fund investors are taking a different approach to their passive fund peers amid market volatility in developed markets, fund flows data from Morningstar Direct shows.

When looking into the same Morningstar category, modest inflows in exchange-traded funds suggest that ETF investors are less sceptical about the outlook of markets in the US and the UK while open-ended fund investors are selling out quick.

In April, the UK large-cap blend equity sector in ETFs saw inflows of £1.5 million while in the same sector in open-ended funds, outflows jumped by about £475 million in April. Similar scenarios are applicable to the UK equity income sector and the US large-cap blend equity sector.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
iShares Core FTSE 100 ETF GBP Dist598.60 GBX0.71
iShares UK Dividend ETF GBP Dist563.40 GBX1.16
Vanguard FTSE 100 UCITS ETF26.89 GBP0.88
Vanguard FTSE All-World UCITS ETF GBP70.31 GBP0.64
Vanguard S&P 500 UCITS ETF GBP47.44 GBP0.92

About Author

Karen Kwok

Karen Kwok  is a Reporter for Morningstar.co.uk

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