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

  Passive Investment Vehicles Have Posted The Strongest Asset Growth Since The End of 2007
Posted Under: Conceptual Investing
Supporting Image for Blog Post

View from the Observation Deck  
  1. This marks the 10th calendar year in which we have tracked the asset growth of the four major types of packaged products since the close of 2007 (prior to financial crisis in 2008-2009).
  2. The percentage change in the total assets invested in packaged products from 2008 to 2020 were as follows (see chart): Exchange-Traded Funds (ETFs) (+796%); UITs (+45%); Mutual Funds (+99%); and Closed-End Funds (-12%).
  3. From 2019 to 2020, total assets in each of the four major types featured in the chart fluctuated as follows: ETFs ($4.40 trillion vs. $5.45 trillion); UITs ($79 billion vs. $77 billion); Mutual Funds ($21.3 trillion vs. $23.9 trillion); and Closed-End Funds ($278 billion vs. $278 billion).
  4. With respect to mutual funds, while we do not yet have the figures for 2020, data from the Investment Company Institute indicates that assets held in Passive (Index) funds rose 400.42% from 2008 through 2019, while Active fund assets increased just 66.14%. This clearly shows that passive investing is driving the growth in mutual fund assets.  
  5. Investors once again favored passive investing over active management in 2020, according to Morningstar. Its data shows that estimated net flows to all Active long term mutual funds and ETFs totaled -$188.0 billion, while estimated net flows to all Passive funds and ETFs totaled $400.5 billion.
  6. There is no doubt that passive investing continues to drive demand for packaged products.

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

Download a PDF of this post, please click here.
Posted on Tuesday, March 23, 2021 @ 12:57 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

A Snapshot Of Two Cyclical Sectors
A Snapshot Of Bond Valuations
The Climate For U.S. Crude Oil
Top-Performing S&P 500 Index Subsectors Since 12/14/20
How U.S. Stocks Have Fared Over The Past 21 Years
How Bonds Have Fared Since 8/4/20
A Snapshot of Growth vs. Value Investing
A Global Snapshot Of Government Bond Yields
September 30, 1981
Sector Performance Via Market Capitalization
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.