Home Logon FTA Investment Managers Blog Subscribe About Us Contact Us

Search by Ticker, Keyword or CUSIP       
Blog Home
Bob Carey
Chief Market Strategist
X •  LinkedIn

  Investors Have Been Rather Aggressive With Respect To Passive Investing
Posted Under: Conceptual Investing
Supporting Image for Blog Post


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 over the past year.
  2. Passive mutual funds and ETFs reported net inflows totaling $484.8 billion, compared to net outflows totaling $39.9 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. The passive versus active philosophical argument is garnering some coverage from the financial media these days. Perform an Internet search on the topic and you will likely find a number of articles to peruse.
  5. 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.
  6. We intend to monitor net flows moving forward to see if this is just a phase, or perhaps the "new norm."

This chart is for illustrative purposes only and not indicative of any actual investment.

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

Posted on Thursday, June 18, 2015 @ 12:08 PM • Post Link Print this post Printer Friendly

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.
Search Posts
Market Commentary and Analysis
Market Commentary Video
Monthly Talking Points
Quarterly Newsletter
Market Observations
Subscribe To Receive Email

The U.S. Dollar Has A Significant Influence On Commodity Prices
These Three Equity Income Asset Classes Have Sold-Off Following Strong Gains
S&P 500 Top-Line Growth Estimates
Under Pressure
Treasury Yields Are Inching Higher…Again
Semiconductor Sales Still Robust
The Recovery In The Homebuilding Sector Still A Work In Progress
Then Came the Last Days of May
Sizing Up The Bull
Bonds Have Already Endured A Rise In Interest Rates
Skip Navigation Links.
Search by Topic
Skip Navigation Links.

The information presented is not intended to constitute an investment recommendation for, or advice to, any specific person. By providing this information, First Trust is not undertaking to give advice in any fiduciary capacity within the meaning of ERISA, the Internal Revenue Code or any other regulatory framework. Financial professionals are responsible for evaluating investment risks independently and for exercising independent judgment in determining whether investments are appropriate for their clients.
Follow First Trust:  
First Trust Portfolios L.P.  Member SIPC and FINRA. (Form CRS)   •  First Trust Advisors L.P. (Form CRS)
Home |  Important Legal Information |  Privacy Policy |  California Privacy Policy |  Business Continuity Plan |  FINRA BrokerCheck
Copyright © 2024 All rights reserved.