The low-cost leviathan leads the way so far in 2023 when it comes to inflows among mutual fund titans.

Mortimer J. "Tim" Buckley Vanguard Chairman, CEO

This article draws from Morningstar Direct data for June 2023 mutual fund and ETF flows, excluding money-market funds and funds of funds. (Other asset management products, like collective trusts and SMAs, are also not included.***) More specifically, this article focuses on the eight firms with more than $500 billion each in total long-term fund and ETF AUM.

Jumbo fund firms held $17.122 trillion in total long-term fund AUM across 7,835 funds as of June 30, 2023, and they accounted for 68.56 percent of overall industry long-term fund AUM. That compares with $16.344 trillion, 7,812 funds, and 68.38 percent of industry AUM on May 31, 2023, and with $15.247 trillion and 66.85 percent of industry AUM on June 30, 2022.

Six of those jumbo fund firms brought in net inflows in June 2023. That's up month-over-month and year-over-year from two in May 2023 and two in June 2022.

Vanguard led the way in the first half of 2023, thanks to an estimated $43.075 billion in net year-to-date inflows as of June 30. Other big YTD inflows winners included: J.P. Morgan (including Six Circles), $40.64 billion; and SSGA, $16.896 billion.

SSGA led the pack last quarter, thanks to an estimated $26.277 billion in net inflows in the second quarter of 2023. Other big Q2 2023 inflows winners included BlackRock (including iShares), $20.788 billion; and J.P. Morgan, $16.156 billion.

BlackRock regained the lead last month, bringing in an estimated $17.778 billion in net June 2023 inflows, up M/M from $4.631 billion in net May 2023 outflows and up Y/Y from $12.269 billion in net June 2022 inflows. Other big June 2023 inflows winners included: Vanguard, $12.479 billion (up M/M from $10.538 billion in net outflows, up Y/Y from $3.774 billion); and J.P. Morgan, $7.686 billion (up M/M from $5.699 billion, up Y/Y from $399 million in net outflows).

On the flip side, T. Rowe Price led the outflows pack in the first half of 2023, thanks to an estimated $27.832 billion in net YTD outflows as of June 30. Other big outflows sufferers included: Capital Group (home of American Funds), $20.606 billion; and Invesco, $688 million.

Last quarter, only two jumbo fund firms suffered net outflows: T. Rowe, with $13.674 billion in net outflows; and Cap Group, with $13.294 billion.

The same two firms were the only jumbo fund firm outflows sufferers in June 2023. T. Rowe Price led the pack with $4.662 billion in net outflows, down M/M from $5.16 billion in May 2023 and down Y/Y from $6.167 billion in June 2022. Cap Group suffered $2.688 billion in net June 2023 outflows, down M/M from $5.419 billion and down Y/Y from $5.877 billion.

As a group, the eight largest fund firms brought in $73.559 billion in the first half of 2023. That's equivalent to 0.43 percent of their combined AUM and accounts for 193.35 percent of overall industry long-term inflows.

In Q2 2023, jumbo fund firms brought in $60.414 billion in net inflows. That's equivalent to 0.35 percent of their combined AUM and accounts for 268.71 percent of overall industry long-term inflows.

In June 2023 along, jumbo fund firms brought in $45.491 billion in net inflows, equivalent to 0.27 percent of their combined AUM and accounting for 126.26 percent of overall industry long-term inflows. That's up M/M from $6.516 billion in net outflows, 0.04 percent of AUM, and 28.37 percent of industry outflows in May 2023, and up Y/Y from $11.526 billion in net outflows, 0.08 percent of AUM, and 18.8 percent of overall industry outflows.

Across the entire industry, the 780 firms tracked by the M* team down Y/Y from 790) brought in $38.045 billion in the first half of 2023. That's equivalent to 0.15 percent of their combined AUM.

In Q2 2023, the overall industry brought in $22.483 billion in net inflows. That's equivalent to 0.09 percent of its combined AUM.

In June 2023 alone, the overall industry brought in $36.029 billion in net inflows, equivalent to 0.14 percent of its combined $24.973 trillion in AUM across 42,054 funds. That's up M/M from $22.969 billion in net outflows, 0.1 percent, $23.9 trillion in AUM, and 41,597 funds in May 2023, and up Y/Y from $61.306 billion in net outflows, 0.27 percent, $22.808 trillion in AUM, and 42,029 funds in June 2022.

Active funds suffered an estimated $31.238 billion in net outflows in June 2023, down M/M from $44.016 billion in May 2023 and down Y/Y from $90.45 billion in June 2022. On the flip side, passive funds brought in $67.267 billion in net June 2023 inflows, up M/M from $21.046 billion and up Y/Y from $29.219 billion.

*** 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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