Despite a 30-percent dip from December, the smallest fund firms' inflows are still up 42 percent year-over-year.

William Kevin "Bill" Smith Renaissance Capital LLC CEO, Co-Founder

This article draws from Morningstar Direct data on January 2021 open-end mutual fund and ETF flows, excluding money-market funds and funds of funds. More specifically, this article focuses on the 479 firms (down from 484 in December 2020 and 505 in January 2020) with less than $1 billion each in long-term fund AUM.

261 of those micro fund firms brought in estimated net inflows in January 2021, up from 228 in December and up from 247 in January 2020. Micro fund firms accounted for an estimated 0.38 percent of long-term mutual fund and ETF AUM as of January 31, 2021, roughly the same market share they had on December 31, 2020 but down from 0.43 percent on January 31, 2020.

Renaissance Capital kept the lead last month among micro fund firms, thanks to an estimated $111 million in January 2021 inflows, down from $249 million in December 2020 but up from $2 million in net outflows in January 2020. Other big January 2021 inflows winners included: Roundhill Financial, $160 million (up from $53 million in December up year-over-year from $2 million); River Canyon, $103 million (up from $38 million in December and up YOY from $8 million); Strategy Shares, $77 million )up from $73 million in December and up YOY from $6 million in net outflows); and Absolute Strategies, $71 million (up from $15 million in December and up YOY from $6 million in net outflows).

Last month included five apparent newcomers: Certeza, Horizon Kinetics, and Morgan Creek.

On the flip side, last month was a rough one for Schroder, thanks to an estimated $314 million in net January 2021 outflows, down from $18 million in December 2020 inflows and down from YOY from $12 million in net inflows. Other big January 2021 outflows sufferers included: HSBC, $72 million (up from $4 million in December and up YOY from $1 million); BTS, $53 million (up from $25 million in December and up YOY from $10 million); AXS. $50 million (up from $34 million in December but down YOY from $4 million in net inflows); and LS, $39 million (down from $1 million in December inflows and down YOY from $55 million).

As a group, micro fund firms brought in an estimated $900 million in net January 2021 inflows, equivalent to 1 percent of their combined AUM and accounting for 0.94 percent of overall industry inflows. That's down from $1.287 billion, 1.41 percent of AUM, and 1.33 percent of industry inflows in December 2020, but it's up YOY from $633 million, 0.7 percent of AUM, and 0.76 percent of industry inflows in January 2020.

Across the entire industry, the 753 firms (up from 751 in December) brought in a combined $95.454 billion in estimated net January 2021 inflows, equivalent to 0.4 percent of their combined AUM. That's down from $96.953 billion and 0.41 percent of AUM in December 2020, but it's up from $83.274 billion and level with 0.4 percent of AUM in January 2020.

Active funds brought in an estimated $40.863 billion in net January 2021 inflows, up from $36.995 billion in December 2020 and up from $17.315 billion in January 2020. Passive funds brought in an estimated $54.591 billion in net January 2021 inflows, down from $59.958 billion in December 2020 and down from $65.959 billion in January 2020. 

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