Net inflows into the active side of the mutual fund industry returned last month, for the first time in 28 months, even as passive inflows increased by 15 percent, according to the latest data from the folks at a publicly traded investment research company.

Abigail Pierrepont "Abby" Johnson FMR (dba Fidelity Investments) Chair, President, 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. The data also excludes other asset management products, like CITs and SMAs.***

Vanguard led the passive side of the business for a second month, thanks to an estimated $21.789 billion in net February 2024 passive inflows, down month-over-month from $30.836 billion in January 2024 but up year-over-year from $14.749 billion in February 2023. Other big February 2024 passive inflows winners included: Fidelity, $16.719 billion (up M/M from $13.18 billion, up Y/Y from $3.111 billion); BlackRock (including iShares), $4.785 billion (up M/M from $3.166 billion, up Y/Y from $15.436 billion in net outflows); Invesco, $2.749 billion (down M/M from $11.366 billion, up Y/Y from $2.34 billion); and Pacer, $1.595 billion (down M/M from $2.1 billion, up Y/Y from $1.57 billion).

Fidelity took the lead on the active side of the business, thanks to an estimated $11.396 billion in net February 2024 active inflows, up M/M from $89 million in January 2024 outflows and up Y/Y from $4.197 billion in February 2023 outflows. Other big February 2024 active inflows winners included: J.P. Morgan (including Six Circles), $8.091 billion (up M/M from $6.917 billion, up Y/Y from $6.483 billion); Allianz's Pimco, $3.892 billion (up M/M from $2.635 billion, up Y/Y from $212 million); BlackRock, $3.006 billion (down M/M from $5.382 billion, up Y/Y from $3.231 billion in net outflows); and Dodge & Cox, $2.033 billion (down M/M from $2.339 billion, up Y/Y from $1.039 billion).

On the flip side, last month was another rough one for SSGA, which led the passive outflows pack for a second consecutive month, thanks to an estimated $5.361 billion in February 2024 passive outflows, down M/M from $17.403 billion in January 2024 and down Y/Y from $12.734 billion in February 2023. Other big February 2024 passive outflows sufferers included: Rafferty's Direxion, $2.317 billion (down M/M fom $367 million in net inflows, up Y/Y from $43 million); ProShares and ProFunds, $1.136 billion (down M/M from $3.092 billion, down Y/Y from $402 million in net inflows); Jackson, $423 million (down M/M fom $463 million, up Y/Y fom $126 million); and Principal, $229 million (up M/M from $156 million, down Y/Y from $47 million in net inflows).

Capital Group (home of American Funds) repeated its active outflows lead, thanks to an estimated $4.272 billion in net February 2024 active outflows, up M/M from $4.067 billion in January 2024 and up Y/Y from $48 million in February 2023. Other big February 2024 active outflows sufferers included: Vanguard, $2.974 billion (down M/M from $4.057 billion, up Y/Y from $485 million); Grayscale, $2.791 billion; TCW (including MetWest), $2.33 billion (up M/M from $1.194 billion, up Y/Y from $264 million); and Franklin Templeton (including Putnam), $2.248 billion (up M/M fom $2.096 billion, up Y/Y from $1.491 billion).

Overall, the 136 passive fund firms (down M/M from 139, down Y/Y from 155) tracked by the M* team brought in an estimated $44.137 billion in net passive inflows in February 2024, up M/M from $38.379 billion and up Y/Y from $4.034 billion. 40.4 percent (55) of those firms brought in net passive inflows last month, compared with 43.2 percent (60) in January 2024 and 49.7 percent (77) in February 2023.

The 717 active fund firms (down M/M from 718, down Y/Y from 737) tracked by the M* team brought in an estimated $14.993 billion in net February 2024 active inflows, the industry's first active inflows month since October 2021, up M/M from $2.438 billion in January 2024 active outflows and up Y/Y from $7.297 billion in February 2023 active outflows. 44.8 percent (321) of those firms brought in net active inflows last month, up M/M from 44 percent (316) but down Y/Y from 47.2 percent (348).

*** This caveat is particularly important for jumbo fund firms, many of which are big players in the 401(k) business, where collective investment trusts (CITs) are a commonly used alternative to traditional mutual funds. 

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