Mutual Fund Performance and Flows During the COVID-19 Crisis

Lubos Pastor and M. Blair Vorsatz

No 27551, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: We present a comprehensive analysis of the performance and flows of U.S. actively-managed equity mutual funds during the COVID-19 crisis of 2020. We find that most active funds underperform passive benchmarks during the crisis, contradicting a popular hypothesis. Funds with high sustainability ratings perform well, as do funds with high star ratings. Fund out ows surpass pre-crisis trends, but not dramatically. Investors favor funds that apply exclusion criteria and funds with high sustainability ratings, especially environmental ones. Our finding that investors remain focused on sustainability during this major crisis suggests they view sustainability as a necessity rather than a luxury good.

JEL-codes: G01 G11 G12 G14 G23 (search for similar items in EconPapers)
Date: 2020-07
New Economics Papers: this item is included in nep-fmk
Note: AP CF
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Citations: View citations in EconPapers (81)

Published as Ľuboš Pástor & M Blair Vorsatz & Jeffrey Pontiff, 2020. "Mutual Fund Performance and Flows during the COVID-19 Crisis," The Review of Asset Pricing Studies, vol 10(4), pages 791-833.

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Related works:
Working Paper: Mutual Fund Performance and Flows During the COVID-19 Crisis (2020)
Working Paper: Mutual Fund Performance and Flows During the COVID-19 Crisis (2020)
Journal Article: Mutual Fund Performance and Flows during the COVID-19 Crisis
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