Passive vs. Active Fund Flows
Supporting Image for Blog Post

 
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 5/31/19.    
  2. Passive mutual funds and ETFs reported estimated net inflows totaling $461.6 billion, compared to estimated net outflows totaling $337.9 billion for those actively managed.  
  3. The three asset classes garnering the largest amount of net inflows in the period were Taxable Bond, U.S. Equity and Municipal Bond at $175.3 billion, $49.3 billion and $43.2 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 have stalled so far in 2019. Net inflows to this category totaled $239.4 billion in 2017 and $87.9 billion in 2018, according to Morningstar.   
  6. 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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Posted on Thursday, June 20, 2019 @ 2:16 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.