The growth of the mutual fund industry's low-cost leviathan is slowing, but it's still on top.
| Mortimer J. Buckley|
Last year Vanguard
brought in $232 billion in net inflows in 2018 according to the company's preliminary estimates, the Financial Times reports
. That, according to the paper, puts the mutually-owned mutual fund firm on top of the pack in terms of net inflows for the seventh year in a row, despite a 38-percent drop from its record 2017 net inflows of $371.9 billion. As noted last week, it looks
like another passive titan was also behind its 2017 numbers last year.
"The rise of passives is flushing out mediocrity," Amin Rajan
, chief executive of Create Research
, tells the FT
. "Active managers face epochal challenges to raise their game."
, CEO of Vanguard, says that investors "have been more conservative over the past 18 months, taking risk off the table and moving into bond and money-market funds." He also pushes back against claims that indexing is too concentrated in too few players.
"Index funds remain a small percentage of the overall market. We remain far away from ownership concentration levels by index tracking funds that would be a cause for concern," Buskley says. "It is wrong to start to worry about issues that may not come to pass."
Neil Anderson, Managing Editor
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