US Funds Gather $50B of New Assets in June: Morningstar

$50 billion poured into U.S. open-end mutual funds and exchange-traded funds (ETFs) in June—even as U.S. equity funds posted their worst outflows in more than three years, according to a new report from Morningstar.

Investors continue to gravitate towards active ETFs despite a modest slowdown, while bond funds dominated inflows as equity funds experienced losses. 

Active ETFs Stand Out Despite Slowdown in Growth 

Active ETF flows cooled in the second quarter of 2025, with the 8.8% organic growth rate marking the lowest since the third quarter of 2023. However, it’s not surprising that there would be some slower growth rates given the ETF market’s large total asset base, according to the report. 

The slowdown seen in June may just be a “temporary pause in the data,” Drew Carter, an analyst of equity strategies at Morningstar and an author of the report, told etf.com.

These funds still took in $29.4 billion in June, reaching $200 billion in inflows for the first half of the year.

“We don’t really see any underlying reasons that might cause us to expect a more durable decline in flows to these vehicles,” Carter said. “When I speak to active managers, I would say this is a topic that nearly all of them have explored, and many are moving to creating their first active ETF or adding to their existing lineup to meet client demand.” 

Investors Turn Away From Stocks

Stock market benchmarks like the S&P 500 and Nasdaq Composite may be hitting record highs, but that doesn’t mean investors are going all in on equity funds. In fact, U.S. stock funds lost nearly $36 billion in June, suffering their worst monthly outflow in more than three years.

Bond funds benefited from investors looking to take a bit of risk off the table. Taxable bond funds picked up $48.8 billion in June, with intermediate core bond funds marking their largest monthly inflow—$19.7 billion—since June 2021.

And while U.S. equity funds suffered, international equity funds brought in more than $15 billion in June, “building on May’s momentum and showing continued demand for global diversification,” per the report.

IBIT Dominates Digital Asset Flows

Investors also remain interested in digital assets, which made up 60% of assets in the alternatives space in June. Much of that growth can be attributed to one fund: the iShares Bitcoin Trust ETF (IBIT), which accounted for 86% of total inflows for digital asset funds in the first half of the year.

"There's a long distance between that one and a lot of the other ones that are mostly Bitcoin ETFs, but we did see some decent flows into some Ethereum ETFs,” Carter said, specifically calling out the iShares Ethereum Trust (ETHA). “I think those trends are just based on the relative popularity of Bitcoin to Ethereum.”