Home Logon FTA Investment Managers Blog Subscribe About Us Contact Us

Search by Ticker, Keyword or CUSIP       
 
 
 
Blog Home
Bob Carey
Chief Market Strategist
Bio
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 11th 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 2021 were as follows (see chart): Exchange-Traded Funds (ETFs) (+1,083%); UITs (+79%); Mutual Funds (+125%); and Closed-End Funds (-2%).
  3. From 2020 to 2021, total assets in each of the four major types featured in the chart fluctuated as follows: ETFs ($5.45 trillion vs. $7.19 trillion); UITs ($78 billion vs. $95 billion); Mutual Funds ($23.9 trillion vs. $27.0 trillion); and Closed-End Funds ($279 billion vs. $309 billion).
  4. With respect to mutual funds, while we do not yet have the figures for 2021, data from the Investment Company Institute indicates that assets held in Passive (Index) funds rose 462% from 2008 through 2020, while Active fund assets increased just 83%. 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 2021, according to data from Morningstar. Its data shows that estimated net flows to all Active long term mutual funds and ETFs totaled $250.0 billion, while estimated net flows to all Passive funds and ETFs totaled $958.4 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 Thursday, March 31, 2022 @ 11:05 AM • 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 ANALYSIS
Market Commentary and Analysis
•Market Commentary Video
•Monthly Talking Points
•Quarterly Newsletter
•Market Observations
Subscribe To Receive Email
 


 PREVIOUS POSTS
• The Real Rate of Return on the 10-Year Treasury Note
• The Buy And Hold Investment Strategy Is Not Dead
• A Global Snapshot Of Government Bond Yields
• How Bonds Have Fared Since 8/4/20
• A Snapshot of Growth vs. Value Investing
• Sector Performance Via Market Cap. (2020-2021 and YTD-3/9/22)
• A Perspective On Crude Oil Prices
• A Snapshot Of The U.S. Dollar
• A Snapshot Of Bond Valuations
• A Snapshot Of The Last Four 10%-Plus Declines In The S&P 500 Index
Archive
Skip Navigation Links.
Expand 20242024
Expand 20232023
Expand 20222022
Expand 20212021
Expand 20202020
Expand 20192019
Expand 20182018
Expand 20172017
Expand 20162016
Expand 20152015
Expand 20142014
Expand 20132013
Expand 20122012
Expand 20112011

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.