The Low-Cost Leviathan kept the flows lead last month among large fund firms, despite a $7.964-billion drop in one month, according to the latest data from the folks at a publicly traded investment research firm.

Mortimer J. "Tim" Buckley Vanguard Chairman, CEO

This article draws from Morningstar Direct data on February 2024 open-end mutual fund and ETF flows, excluding money-market funds and funds of funds. (Other asset management products, like CITs and SMAs, are also not included.***) More specifically, this article focuses on the 64 firms with between 100 and 999 long-term mutual funds and ETFs each.

For a second month running, Vanguard led the way last month, thanks to an estimated $18.815 billion in net February 2024 inflows, down month-over-month from $26.779 billion in January 2024 but up year-over-year from $14.264 billion in February 2023. Other big February 2024 inflows winners included: Guggenheim (including Rydex), $4.411 billion (up M/M from $823 million, up Y/Y from $726 million); Allianz's Pimco, $3.873 billion (up M/M from $2.701 billion, up Y/Y from $161 million); Schwab, $1.453 billion (down M/M from $3.052 billion, down Y/Y from $1.932 billion); and VanEck, $1.244 billion (up M/M from $1.113 billion, up Y/Y from $389 million in net outflows).

Vanguard also leads the 2024 inflows pack so far, thanks to an estimated $45.334 billion in net year-to-date inflows as of February 29, 2024. Other big YTD inflows winners included: Pimco, $7.061 billion; and Schwab, $4.505 billion.

On the flip side, SSGA led the outflows pack for a second month in a row, thanks to an estimated $5.473 billion in net February 2024 outflows, down M/M from $17.505 billion in January 2024 and down Y/Y from $12.886 billion in February 2023. Other big February 2024 outflows sufferers included: Capital Group (home of American Funds), $5.473 billion (up M/M from $4.067 billion, up Y/Y from $48 million); TCW (including MetWest), $4.272 billion (up M/M from $1.249 billion, up Y/Y from $264 million); Rafferty's Direxion, $2.237 billion (down M/M from $571 million in net inflows, down Y/Y from $68 million in net inflows); and T. Rowe Price, $1.616 billion (down M/M from $4.284 billion, down Y/Y from $3.151 billion).

SSGA also leads the 2024 outflows sufferers so far, thanks to an estimated $22.977 billion in net YTD outflows as of February 29, 2024. Other big outflows sufferers included: Capital Group, $8.339 billion; and T. Rowe, $5.899 billion.

As a group, large fund firms brought in an estimated $14.513 billion in net February 2024 inflows, ending the month with $17.29 trillion in AUM across 22,916 funds. That compares with $1.939 billion in net January 2024 outflows and $16.708 trillion in AUM and 22,803 funds on January 31.

As of February 29, 2024, large fund firms accounted for 62.6 percent of industry long-term fund AUM and 53.9 percent of industry long-term funds, and they brought in 23 percent of February 2024 long-term inflows. That compares with 62.8 percent of industry AUM and 53.7 percent of funds on January 31, 2024.

Large firms brought in $8.818 billion in net inflows over the first two months of 2024. They accounted for 9.1 percent of long-term inflows.

Across the industry, the 778 firms tracked by the M* team (up M/M from 773, down Y/Y from 782) brought in an estimated $63.13 billion in net February 2024 inflows, ending the month with $27.618 trillion in AUM across 42,551 funds. That compares with $35.941 billion in net inflows, $26.623 trillion in AUM, and 42,446 funds in January 2024, and with $3.245 billion in net outflows, $23.493 trillion in AUM, and 42,324 funds in February 2023.

The industry brought in $97.334 billion in net inflows over the first two months of 2024.

***This caveat is particularly important for large fund firms, many of which are big players in the 401(k) business, where collective investment trusts (CITs) and separately managed accounts (SMAs) are commonly used alternatives to traditional mutual funds. 

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