Carefully consider the investment objectives, risks, charges and expenses before investing. A prospectus, obtained by calling 800-669-3900, contains this and other important information about an investment company. Read carefully before investing.
A mutual fund is not FDIC-insured, may lose value, and is not guaranteed by a bank or other financial institution.
Performance quoted represents past performance, is no guarantee of future results, and may not provide an adequate basis for evaluating the performance of the product over varying market conditions or economic cycles. Current performance may be lower or higher than the performance data quoted. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost.
TD Ameritrade receives remuneration from mutual fund companies, including those participating in its no-load, no-transaction-fee program, for recordkeeping, shareholder services, and other administrative and distribution services. The amount of TD Ameritrade's remuneration for these services is based in part on the amount of investments in such funds by TD Ameritrade clients. PLEASE ALSO SEE IMPORTANT ADDITIONAL FUND FEE DISCLOSURE INFORMATION
No-transaction-fee funds and other funds offered through TD Ameritrade have other fees and expenses that apply to a continued investment in the fund and are described in the prospectus.
Mutual funds, closed-end funds and exchange-traded funds are subject to market, exchange rate, political, credit, interest rate, and prepayment risks, which vary depending on the type of fund. International investments involve special risks, including currency fluctuations and political and economic instability. Asset allocation and diversification do not eliminate the risk of experiencing investment losses. Fund purchases may be subject to investment minimums, eligibility and other restrictions, as well as charges and expenses.
1You could lose money by investing in a money market fund.Although the fund seeks to preserve the value of your investment at $1 per share, it cannot guarantee it will do so.The fund may impose a fee upon the sale of your shares or may temporarily suspend your ability to sell shares if the fund's liquidity falls below required minimums because of market conditions or other factors. An investment in the fund is not insured or guaranteed by the FDIC or any other government agency. The fund's sponsor has no legal obligation to provide financial support to the fund, and you should not expect that the sponsor will provide financial support to the fund at any time.
2You could lose money by investing in a money market fund. Although the fund seeks to preserve the value of your investment at $1 per share, it cannot guarantee it will do so. An investment in the fund is not insured or guaranteed by the FDIC or any other government agency. The fund’s sponsor has no legal obligation to provide financial support to the fund, and you should not expect that the sponsor will provide financial support to the fund at any time.
3You could lose money by investing in a money market fund. Because the share price of the fund will fluctuate, when you sell your shares they may be worth more or less than what you originally paid for them. The fund may impose a fee upon the sale of your shares or may temporarily suspend your ability to sell shares if the fund's liquidity falls below required minimums because of market conditions or other factors. An investment in the fund is not insured or guaranteed by the FDIC or any other government agency. The fund's sponsor has no legal obligation to provide financial support to the fund, and you should not expect that the sponsor will provide financial support to the fund at any time.
Most mutual funds charge 2.00% on the redemption of shares (including by exchange) held for less than a certain number of calendar days. Performance figures reported do not reflect the deduction of this fee. If reflected, the fee would reduce the performance quoted. Please refer to the fund's prospectus for redemption fee information. TD Ameritrade may also charge its own short-term redemption fee.
TD AMERITRADE RISKS OF INVESTING IN FUNDS: PLEASE READ IMPORTANT ADDITIONAL MUTUAL FUND, EXCHANGE-TRADED FUND, AND CLOSED-END FUND RISK DISCLOSURES
Research and planning tools are obtained by unaffiliated third-party sources deemed reliable by TD Ameritrade. However, TD Ameritrade does not guarantee their accuracy and completeness and makes no warranties with respect to results to be obtained from their use. The Investment Profile report is for informational purposes only.
Mutual Funds: Commentary
Hopes of a sustained rebound in investor demand dissipated in February 2023 as U.S. funds saw about $3 billion leave. The general flow trends across the 10 category groups rhymed with January’s, but inflows moderated while outflows picked up.
Active/Passive Divide Complicates U.S. Equity Flows
U.S. equity funds had modest outflows in January but saw larger ones in February. The category group dropped $25.4 billion during the month, driven by a $21.0 billion outflow from large-blend funds. The dispersion of flows within the broader group is likely linked to the relative prevalence of actively managed funds, which continue to struggle to attract inflows.
Investors Pivot to Europe
International-equity funds broke a five-month streak of outflows in January and built on that momentum in February with a $9 billion intake. Investors have most notably embraced Europe-stock funds so far in 2023, as they’ve collected over $8 billion through February—the most of any category in the group and good for an impressive 14% organic growth rate.
Taxable Bond’s Big Hitters Step Up
Taxable-bond funds reeled in nearly $21 billion in February behind strong inflows into the two largest bond categories. Intermediate core and intermediate core-plus funds led all Morningstar Categories with about $17 billion and $8 billion of inflows, respectively. That continued a hot start to 2023 after heavy outflows from both categories drove record taxable-bond outflows in 2022.
Bond Investors Reverse Course on Risk
After piling into riskier bond funds in January, investors moved to safer options in February. The reversal hit high-yield bond funds the hardest, as they suffered their worst outflows since January 2022. Cashlike ultrashort bond funds, on the other hand, welcomed over $8 billion of new money.
Nontraditional-Equity Funds Still on Fire
A February intake of $2.9 billion brought nontraditional-equity funds’ streak to 26 months of inflows. Over that stretch, they’ve collected nearly $48 billion. Much of the group’s success owes to a star strategy in JPMorgan Equity Premium Income, whose mutual fund () and ETF () vehicles are responsible for roughly $28 billion of that total.
This article is adapted from the Morningstar Direct U.S. Asset Flows Commentary for February 2023. .
Profitable Lessons From the Bad Timing of Other Investors
U.S. Fund Flows: Widespread Outflows Defined March
How Can Active Stock Managers Improve Their Funds’ Performance? By Taking a Vacation—a Long One
How Do Your State’s 529 Tax Benefits Stack Up?
Bracing for Breakthroughs
May ETF Flows Favor Recent Winners from Divergent Stock Market
U.S. Government’s Investment Options Good but Could Be Great
Investing in Times of Climate Change 2023
Mastering Multifactor Funds
Why This BlackRock Allocation Fund Earned an Upgrade
3rd Party Research Disclosure /public-11:55:53
Market Data Disclosure