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  Investors Continue To Favor Passive Funds Over Those Actively Managed
Posted Under: Conceptual Investing

 

View from the Observation Deck 

  1. Those investors directing capital into mutual funds and exchange traded funds (ETFs) have clearly favored passive investing over active management for more than a year. Here is a link to a previous post (click here to view).
  2. Passive mutual funds and ETFs reported net inflows totaling $434.8 billion, compared to net outflows totaling $175.2 billion for those actively managed (see chart).
  3. The three asset classes/categories impacted the most have been U.S. Equity, International Equity and Taxable Bond.
  4. One of the primary reasons for the increased interest in passive investing is the surge in the number of ETFs designed to replicate an index, in our opinion.
  5. We intend to monitor net flows moving forward to see if this is just a phase, or perhaps the "new norm."

The chart and performance data referenced are for illustrative purposes only and not indicative of any actual investment.

To Download a PDF of this post, please click here.

Posted on Thursday, December 17, 2015 @ 1:32 PM • Post Link Share: 
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These posts were prepared by First Trust Advisors L.P., and reflect the current opinion of the authors. They are based upon sources and data believed to be accurate and reliable. Opinions and forward looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security.
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