An anti-ESG ETF startup took the inflows lead last month among the smallest fund firms.
| Matt Cole CEO, Chief Investment Officer Strive Asset Management | |
This article draws from
Morningstar Direct data on June 2023 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 517 firms (down month-over-month from 521 in
May 2023 and down year-over-year from 529 in
June 2022) with less than $1 billion each in long-term fund AUM.
Micro fund firms had $99 billion in total long-term AUM across 2,734 funds and accounted for 0.4 percent of overall industry long-term fund AUM as of June 30, 2023. That compares with $100 billion, 2,807 funds, and 0.42 percent of industry AUM on May 31, 2023, and with $100 billion and 0.44 percent of industry AUM on June 30, 2022.
194 of those micro fund firms brought in net inflows in June 2023. That's up M/M from 177 in May 2023 but down Y/Y from 215 in June 2022.
Envestnet's ActivePassive led the micro firm inflows pack in the first half of 2023, thanks to an estimated $350 million in net year-to-date inflows as of June 30. Other big YTD inflows winners included:
Strive, $303 million;
Ambrus, $271 million;
YieldMax, $207 million; and
Leader, $181 million.
ActivePassive also led the way last quarter, thanks to an estimated $350 million in net inflows in the second quarter of 2023. Other big Q2 2023 inflows winners included: YieldMax, $177 million; and Strive, $152 million.
Strive took the micro firm inflows lead last month, thanks to an estimated $102 million in net June 2023 inflows, up M/M from $19 million in May 2023. Other big June 2023 inflows winners included: YieldMax, $101 million (up M/M from $29 million); and
Neos, $99 million (up M/M from $14 million.
Last month there were at least two apparent mutual fund industry newcomers:
Running Oak Capital and
Volatility Shares Trust.
On the flip side,
AlphaCentric still leads the 2023 outflows pack so far, thanks to an estimated $205 million in net YTD inflows as of June 30. Other big YTD outflows sufferers included:
Frontier, $166 million;
Teucrium, $163 million;
Lyrical, $149 million; and
Knollwood's Grant Park, $132 million.
AGF led the outflows pack last quarter, thanks to an estimated $121 million in net Q2 2023 outflows. Other big Q2 outflows sufferers included:
PineBridge, $120 million; and
Palmer Square, $93 million.
AGF also took the outflows lead last month, thanks to an estimated $122 million in net June 2023 outflows, up M/M from $2 million in net May 2023 inflows and up Y/Y from negligible net June 2022 inflows. Other big June outflows sufferers included:
Heitman, $57 million (up M/M from negligible net inflows, up Y/Y from $2 million in net outflows (down M/M from negligible net inflows, up Y/Y from $2 million in net outflows); and Teucrium, $50 million (up M/M from $43 million, down Y/Y from $124 million).
As a group, micro fund firms brought in an estimated $239 million in net inflows in the first half of 2023. That's equivalent to 0.24 percent of their combined AUM and accounted for 0.63 percent of overall industry long-term inflows.
In Q2 2023, micro firms suffered an estimated $282 million in net outflows. That's equivalent to 0.28 percent of their combined AUM.
In June 2023 alone, micro firms suffered an estimated $117 million in net outflows, equivalent to 0.12 percent of their combined AUM. That compares with $126 million and 0.13 percent in May 2023, and with $164 million and 0.16 percent in June 2022.
In Q2 2023, the overall industry brought in $22.483 billion in net inflows. That's equivalent to 0.09 percent of its combined AUM.
In June 2023 alone, the overall industry brought in $36.029 billion in net inflows, equivalent to 0.14 percent of its combined $24.973 trillion in AUM across 42,054 funds. That's up M/M from $22.969 billion in net outflows, 0.1 percent, $23.9 trillion in AUM, and 41,597 funds in May 2023, and up Y/Y from $61.306 billion in net outflows, 0.27 percent, $22.808 trillion in AUM, and 42,029 funds in June 2022.
Active funds suffered an estimated $31.238 billion in net outflows in June 2023, down M/M from $44.016 billion in May 2023 and down Y/Y from $90.45 billion in June 2022. On the flip side, passive funds brought in $67.267 billion in net June 2023 inflows, up M/M from $21.046 billion and up Y/Y from $29.219 billion. 
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