• In aggregate, active 4-Star funds have remained in negative sales territory since 2022, and only active 5-Star funds have netted positive flows so far in 2023 through August.
• From 2019-2021, active 4-Star funds netted positive cumulative sales of $273 billion. However, from 2022 to August 2023, these funds experienced net outflows of $433 billion.
• Meanwhile, active 5-Star funds accumulated a $30 billion net intake from 2022 to August 2023, the only star-rating overall to net positive sales during this period.
• The reduced risk tolerance of 2022 hasn’t reverted to pre-2022 levels so far in 2023, and despite star ratings being backwards-looking, investors are hesitant to commit to active funds that are anything less than top-rated.

Active Mutual Fund and ETF Flows by Morningstar Star Rating, 2019 – August 2023

Excludes fund-of-funds.
Source: Morningstar, FUSE Research Network