Outflows from active funds shrunk by 96 percent last month, even as inflows into passive funds shrunk by 68 percent, according to the latest data from the folks at a publicly traded investment research company.

Mortimer J. "Tim" Buckley Vanguard Chairman, CEO

This article draws from Morningstar Direct data on January 2024 open-end mutual fund and ETF flows, excluding money-market funds and funds of funds. The data also excludes other asset management products, like CITs and SMAs.

Vanguard regained the lead on the passive side, thanks to an estimated $30.836 billion in net January 2024 passive inflows, up month-over-month from $22.249 billion in December 2023 and up year-over-year from $18.399 billion in January 2023. Other big January 2024 passive inflows winners included: Fidelity, $13.18 billion (up M/M from $9.463 billion, up Y/Y from $5.807 billion); Invesco, $11.366 billion (up M/M from $8.317 billion, up Y/Y from $1.369 billion in net outflows); BlackRock (including iShares), $3.166 billion (down M/M from $27.275 billion, down Y/Y from $4.669 billion); and Schwab, $3.113 billion (down M/M from $3.473 billion, down Y/Y from $5.363 billion).

J.P. Morgan (including Six Circles) regained the active inflows lead last month, thanks to an estimated $6.917 billion in net January 2024 active inflows, up M/M from $874 million in December 2023 and up Y/Y from $6.238 billion in January 2023. Other big January 2024 active inflows winners included: BlackRock, $5.382 billion (up M/M from $3.942 billion in net outflows, up Y/Y from $199 million in net inflows); Column Funds (from Northwestern Mutual's Mason Street Advisors), $3.358 billion (up M/M from $25 million); Allianz's Pimco, $2.635 billion (up M/M from $747 million, down Y/Y from $2.641 billion); and Dodge & Cox, $2.339 billion (up M/M from $351 million in net outflows, up Y/Y from $1.12 billion in net inflows).

On the flip side, last month was rough for SSGA, which took the passive outflows lead thanks to an estimated $17.403 billion in net January 2024 passive outflows, down M/M from $45.317 billion in December 2023 inflows and down Y/Y from $3.847 billion in January 2023 inflows. Other big January 2024 passive outflows sufferers included: Grayscale, $5.916 billion (up M/M from negligible outflows, down Y/Y from zero net flows); ProShares and ProFunds, $3.092 billion (up M/M from $1.802 billion, down Y/Y from $1.82 billion in net inflows); USCF, $579 million (down M/M from $178 million in net inflows, down Y/Y from $265 million in net inflows); and Jackson, $463 million (up M/M from $353 million, up Y/Y from $355 million).

Capital Group (home of American Funds) took the active outflows lead last month, breaking Vanguard's four-month streak, thanks to an estimated $4.067 billion in net January 2024 active Capital Group outflows, down M/M from $9.576 billion in December 2023 but up Y/Y from $2.61 billion in January 2023. Other big January 2024 active outflows sufferers included: Vanguard, $4.057 billion (down M/M from $10.628 billion, up Y/Y from $901 million); T. Rowe Price, $3.904 billion (down M/M from $5.232 billion, down Y/Y from $6.031 billion); Principal, $2.839 billion (up M/M from $811 million, up Y/Y from $275 million); and Franklin Templeton (including Putnam), $2.096 billion (down M/M from $4.261 billion, up Y/Y from $1.111 billion).

Overall, the 139 passive fund firms tracked by the M* team (down M/M from 141, down Y/Y from 155) brought in an estimated $38.379 billion in net passive inflows in January 2024, down M/M from $118.097 billion in December 2023 and down Y/Y from $47.436 billion in January 2023. 43.2 percent (60) of those firms brought in net passive inflows last month, compared with 42.5 percent (60) in December 2023 and with 80 (51.6 percent) in January 2023.

The 718 active fund firms (down M/M from 720, down Y/Y from 735) tracked by the M* team suffered an estimated $2.438 billion in net January 2024 active outflows, down M/M from $60.999 billion in December 2023 and down Y/Y from $4.367 billion in January 2023. 44 percent (316) of those firms brought in net active inflows last month, up M/M from 38.1 percent (274) but down Y/Y from 48.8 percent (359). 

Stay ahead of the news ... Sign up for our email alerts now
CLICK HERE