Morningstar: Flows shift from US to international strategies

The Morningstar Direct U.S. Asset Flows Update for March shows that the international –equity Morningstar group saw inflows of $34.7 billion during the last month. These are the largest flows for the group since January 2013, and are mostly driven by currency-hedged ETFs. The European Central Bank’s quantitative easing program seems to have stimulated investor confidence.

Taxable-bonds have also remained strong in the last four weeks, despite expectations that the Federal Reserve will raise rates in June.

The active U.S. equity group saw its largest outflow in eight months, while passive U.S. equity continued to see inflows. Overall, the U.S. equity group lost money during March, staying flat in cumulative flows over the last seven years. In comparison, international equity has gained more than $700 billion over the same time period.

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