Active outflows dropped 78 percent last month, and passive inflows climbed by 23 percent, according to the latest data from the folks at a publicly traded investment research company.

Mary Callahan Erdoes J.P. Morgan CEO of Asset and Wealth Management

This article draws from Morningstar Direct data on September 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 for a second month in a row, thanks to an estimated $21.01 billion in September 2024 passive inflows, up by $2.054 billion month-over-month from August 2024 and up by $12.566 billion year-over-year from September 2023. Other big September 2024 passive inflows winners included: SSGA, $18.16 billion (a $21.465-billion net flows improvement M/M and up by $10.821 billion Y/Y); BlackRock (including iShares), $9.703 billion (down by $7.036 billion M/M, but a $10.396-billion net flows improvement Y/Y); Schwab, $4.942 billion (down by $1.243 billion M/M but up by $2.792 billion Y/Y); and Invesco, $2.649 billion (down by $221 million M/M, down by $725 million Y/Y).

J.P. Morgan (including Six Circles) led the way on the active side for a fifth consecutive month, thanks to an estimated $6.502 billion in net September 2024 active inflows, up by $1.544 billion M/M from August 2024 and up by $3.826 billion Y/Y from September 2023. Other big September 2024 active inflows winners included: Allianz's Pimco, $2.75 billion (up by $2.431 billion M/M, and a $3.209-billion Y/Y net flows improvement); BlackRock, $2.511 billion (up by $2.201 billion M/M, and a $4.966-billion Y/Y net flows improvement); Baird (including Strategas), $2.471 billion (up by $1.568 billion M/M, up by $1.896 billion Y/Y); and DFA, $1.902 billion (up by $697 million M/M, and a $1.909-billion net flows improvement Y/Y).

On the flip side, Voya took the passive outflows lead last month, suffering an estimated $3.545 billion in net September 2024 passive outflows, up by $3.34 billion M/M from August 2024 and up by $3.403 billion Y/Y from September 2023. Other big September 2024 passive outflows sufferers included: WisdomTree, $828 million (up by $278 million M/M, and a $2.035-billion net flows drop Y/Y); Jackson, $619 million (down by $108 million M/M, up by $306 million Y/Y); Grayscale, $436 million (down by $685 million M/M, up by $436 million Y/Y); and Guggenheim (including Rydex), $304 million (up by $184 million M/M, up by $130 million Y/Y).

Franklin Templeton (including Putnam and Royce) took the active outflows lead last month, thanks to an estimated $12.119 billion in net September 2024 active outflows, up by $6.718 billion M/M from August 2024 and up by $9.586 billion Y/Y from September 2023. Other big September 2024 active outflows sufferers included: Voya, $6.306 billion (up by $6.021 billion M/M, up by $6.05 billion Y/Y); Vanguard, $3.727 billion (down by $1.053 billion M/M, down by $2.462 billion Y/Y); T. Rowe Price, $3.092 billion (down by $2.772 billion M/M, up by $826 million Y/Y); and TCW, $2.054 billion (up by $749 million M/M, up by $1.203 billion Y/Y).

The 149 passive fund firms tracked by the M* team brought in an estimated $60.005 billion in net September 2024 passive inflows, up by $11.028 billion M/M from August 2024 and up by $30.695 billion Y/Y from September 2023. 51 percent (76) of those firms brought in net passive inflows in September 2024.

The 751 active fund firms tracked by the M* team suffered $5.042 billion in net September 2024 active outflows, down by $17.836 billion M/M from August 2024 and down by $36.514 billion Y/Y from September 2023. 44.1 percent (331) of those firms brought in net active inflows in September 2024.

***This caveat is particularly important for the largest 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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