An anti-ESG ETF startup took the inflows lead last month among the smallest fund firms.

Matt Cole CEO, Chief Investment Officer Strive Asset Management

This article draws from Morningstar Direct data on June 2023 open-end mutual fund and ETF flows, excluding money-market funds and funds of funds. (Other asset management products, like CITs and SMAs, are also not included.) More specifically, this article focuses on the 517 firms (down month-over-month from 521 in May 2023 and down year-over-year from 529 in June 2022) with less than $1 billion each in long-term fund AUM.

Micro fund firms had $99 billion in total long-term AUM across 2,734 funds and accounted for 0.4 percent of overall industry long-term fund AUM as of June 30, 2023. That compares with $100 billion, 2,807 funds, and 0.42 percent of industry AUM on May 31, 2023, and with $100 billion and 0.44 percent of industry AUM on June 30, 2022.

194 of those micro fund firms brought in net inflows in June 2023. That's up M/M from 177 in May 2023 but down Y/Y from 215 in June 2022.

Envestnet's ActivePassive led the micro firm inflows pack in the first half of 2023, thanks to an estimated $350 million in net year-to-date inflows as of June 30. Other big YTD inflows winners included: Strive, $303 million; Ambrus, $271 million; YieldMax, $207 million; and Leader, $181 million.

ActivePassive also led the way last quarter, thanks to an estimated $350 million in net inflows in the second quarter of 2023. Other big Q2 2023 inflows winners included: YieldMax, $177 million; and Strive, $152 million.

Strive took the micro firm inflows lead last month, thanks to an estimated $102 million in net June 2023 inflows, up M/M from $19 million in May 2023. Other big June 2023 inflows winners included: YieldMax, $101 million (up M/M from $29 million); and Neos, $99 million (up M/M from $14 million.

Last month there were at least two apparent mutual fund industry newcomers: Running Oak Capital and Volatility Shares Trust.

On the flip side, AlphaCentric still leads the 2023 outflows pack so far, thanks to an estimated $205 million in net YTD inflows as of June 30. Other big YTD outflows sufferers included: Frontier, $166 million; Teucrium, $163 million; Lyrical, $149 million; and Knollwood's Grant Park, $132 million.

AGF led the outflows pack last quarter, thanks to an estimated $121 million in net Q2 2023 outflows. Other big Q2 outflows sufferers included: PineBridge, $120 million; and Palmer Square, $93 million.

AGF also took the outflows lead last month, thanks to an estimated $122 million in net June 2023 outflows, up M/M from $2 million in net May 2023 inflows and up Y/Y from negligible net June 2022 inflows. Other big June outflows sufferers included: Heitman, $57 million (up M/M from negligible net inflows, up Y/Y from $2 million in net outflows (down M/M from negligible net inflows, up Y/Y from $2 million in net outflows); and Teucrium, $50 million (up M/M from $43 million, down Y/Y from $124 million).

As a group, micro fund firms brought in an estimated $239 million in net inflows in the first half of 2023. That's equivalent to 0.24 percent of their combined AUM and accounted for 0.63 percent of overall industry long-term inflows.

In Q2 2023, micro firms suffered an estimated $282 million in net outflows. That's equivalent to 0.28 percent of their combined AUM.

In June 2023 alone, micro firms suffered an estimated $117 million in net outflows, equivalent to 0.12 percent of their combined AUM. That compares with $126 million and 0.13 percent in May 2023, and with $164 million and 0.16 percent in June 2022.

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. 

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