Passive vs. Active Fund Flows

 
View from the Observation Deck  
  1. Investors directing capital into mutual funds and exchange traded funds (ETFs) continued to favor passive investing over active management on a massive scale for the 12-month period ended 12/31/19.    
  2. Passive mutual funds and ETFs reported estimated net inflows totaling $475.99 billion, compared to estimated net outflows totaling $61.43 billion for those actively managed.  
  3. The largest amount of total net inflows in the period belonged to the Taxable and Municipal Bond categories at $413.94 billion and $105.47 billion, respectively. 
  4. The only active category garnering more interest from investors than their passive counterpart via net inflows was Municipal Bond. 
  5. Flows to International Equity funds were slightly positive in the period. The U.S. Equity and Sector Equity categories experienced net outflows.     
  6. We intend to monitor net flows moving forward.

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, January 21, 2020 @ 1:27 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.