Net inflows into the active side of the mutual fund industry repeated last month, despite a $12.285-billion active inflows drop, even as passive inflows doubled, according to the latest data from the folks at a publicly traded investment research company.

This article draws from Morningstar Direct data on March 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 for a third month in a row, thanks to an estimated $28.738 billion in March 2024 inflows, up month-over-month from $21.789 billion in February 2024 and up year-over-year from $6.772 billion in March 2023. Other big March 2024 passive inflows winners included: BlackRock (including iShares), $21.57 billion (up M/M from $4.785 billion, up Y/Y from $9.945 billion); State Street's SSGA, $18.63 billion (up M/M from $5.361 billion, up Y/Y from $35 million); Invesco, $7.138 billion (up M/M from $2.749 billion, up Y/Y from $136 million in net outflows); and Fidelity, $6.724 billion (down M/M from $16.719 billion, down Y/Y from $7.607 billion).

Fidelity repeated its lead on the active side of the business, thanks to an estimated $5.64 billion in net March 2024 active inflows, down M/M from $11.396 billion in net February 2024 inflows but up Y/Y from $6.826 billion in net March 2023 outflows. Other big March 2024 active inflows winners included: J.P. Morgan, $5.384 billion (down M/M from $8.091 billion, up Y/Y from $3.172 billion); BlackRock, $3.404 billion (up M/M from $3.006 billion, up Y/Y from $3.263 billion ); Allianz's Pimco, $1.631 billion (down M/M from $3.892 billion, up Y/Y from $1.822 billion in net outflows); and Baird (including Strategas), $1.502 billion (down M/M from $1.604 billion, up Y/Y from $589 million).

On the flip side, Grayscale took the outflows lead last month among passive fund firms, suffering $6.385 billion in net March 2024 passive outflows, down M/M and Y/Y from negligible net flows. Other big March 2024 passive outflows sufferers included: SEI, $709 million (up M/M from $158 million, down Y/Y from $943 million); Jackson, $377 million (down M/M from $423 million, down Y/Y from $854 million); Voya, $265 million (up M/M from $206 million, down Y/Y from $1.082 billion); and DWS (including Xtrackers), $241 million (down M/M from $198 million in net inflows, up Y/Y from $163 million in net outflows).

Capital Group (home of American Funds) led the active outflows pack for a third consecutive month, thanks to an estimated $3.501 billion in net March 2024 outflows, down M/M from $4.272 billion in February 2024 and down Y/Y from $4.6558 billion in March 2023. Other big March 2024 active outflows sufferers included: Vanguard, $3.426 billion (up M/M from $2.974 billion, down Y/Y from $6.731 billion); T. Rowe Price, $3.214 billion (up M/M from $1.617 billion, down Y/Y from $5.095 billion); Franklin Templeton, $2.525 billion (up M/M from $2.248 billion, down Y/Y from $3.206 billion); and SEI, $2.196 billion (down M/M from $545 million in net inflows, up Y/Y from $943 million in net outflows).

The 146 passive fund firms (up M/M from 136, down Y/Y from 154) tracked by the M* team brought in an estimated $86.841 billion in net passive inflows in March 2024, up M/M from $44.137 billion and up Y/Y from $32.778 billion. 47.3 percent (69) of those firms brought in net passive inflows last month, compared with 40.5 percent in February 2024 and 39.6 percent in March 2023.

The 741 active fund firms (up M/M from 717 in February 2024 and up Y/Y from 739 in March 2024) tracked by the M* team bought in $2.708 billion in net March 2024 active inflows, the industry's second consecutive active inflows month after a 28-month gap, down M/M from $14.993 billion in February 2024 active inflows but up Y/Y from $58.306 billion in March 2023 active outflows. 44.3 percent (328) of those firms brought in net active inflows last month, down M/M from 44.8 percent but up Y/Y from 34.6 percent.

***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) and separately managed accounts (SMAs) are commonly used alternatives to traditional mutual funds. 

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