Investors Continue To Favor Passive Funds Over Actively Managed Funds

 

View from the Observation Deck 

  1. Those investors directing capital into mutual funds and exchange traded funds (ETFs) favored passive investing over active management for the 12-month period ended November 2016. Here is a link to last year's post measuring the same period with similar results (click here).
  2. Passive mutual funds and ETFs reported net inflows totaling $479.8 billion, compared to net outflows totaling $358.8 billion for those actively managed (see chart).
  3. The asset classes/categories reflecting the biggest disparities (>$100 billion) in flows were U.S. Equity, Taxable Bond and International Equity.
  4. The one area of the market where investors actually sought out active management was municipal bonds.
  5. We intend to monitor net flows moving forward.

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

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The next blog post will resume Tuesday, January 3, 2017

Posted on Tuesday, December 20, 2016 @ 2:44 PM

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.