Morningstar: Fixed Income, International, Passive equities lead the way

The taxable bond Morningstar category group experienced its highest inflows in two years during February. $29 billion entered the category, somewhat surprisingly given that the Federal Reserve will likely increase interest rates this year. High yield bonds also did well in February, which is typical for a rising interest-rate environment.

Fueled by the European Central Bank’s quantitative easing program, developed and emerging international-equity funds did well in February. Meanwhile, in the U.S., positive economic indicators drove the S&P 500 up by 6%. As a result, investor confidence in stocks was renewed, but passively-managed funds saw the most overall growth both domestically and abroad.

For more analysis, and Morningstar’s full asset flow report for February 2015, please click here.