Money Market Fund AUM as % of Equity Fund AUM1
As of the end of August, data from Morningstar indicate that U.S. money market funds (MMF) held assets of $2.8 trillion.
While that’s a historically high level, it pales in comparison to assets in equity funds. As the stock market has continued to hit new highs, so too have the assets in equity mutual funds and ETFs, which now total nearly $13 trillion.1
If money market funds are the destination of risk averse capital, then on a nominal basis, their historically high level of assets would suggest that investors were feeling cautious. Relative to equity fund assets, however, it suggests that over the last 25 years investors have never felt more confident
1 Source: Morningstar, as measured by mutual fund and ETF assets in Morningstar’s “US Equity,” “Sector Equity” and “International Equity” US Category Groups, as of August 31, 2018.
Unless otherwise noted, data is sourced from Bloomberg.
Recipients must make their own independent decisions regarding any strategies or securities or financial instruments mentioned herein.
The products or services described or referenced herein may not be suitable or appropriate for the recipient. Many of the products and services described or referenced herein involve significant risks, and the recipient should not make any decision or enter into any transaction unless the recipient has fully understood all such risks and has independently determined that such decisions or transactions are appropriate for the recipient.
The results shown are historical, for informational purposes only, and do not guarantee future results.
Any discussion of risks contained herein with respect to any product or service should not be considered a disclosure of all risks or a complete discussion of the risks involved.
The recipient should not construe any of the material contained herein as investment, hedging, trading, legal, regulatory, tax, accounting or other advice. The recipient should not act on any information in this document without consulting its investment, hedging, trading, legal, regulatory, tax, accounting and other advisors.
The materials in this document represent the opinion of the authors and are not representative of the views of Milliman, Inc. Milliman does not certify the information, nor does it guarantee the accuracy and completeness of such information. Use of such information is voluntary and should not be relied upon unless an independent review of its accuracy and completeness has been performed. Materials may not be reproduced without the express consent of Milliman.
Data included in this document has been sourced from providers that Milliman FRM believes to be reliable from information available publicly or with consent of the provider of the source material. To the fullest extent permitted by law, no representation or warranty, express or implied is made by Milliman FRM as to the accuracy or completeness of the source data or any other information in this document.
