U.S. Domiciled Funds: Active vs. Passive as a % of Assets Under Management Passive accounts for 54% of all U.S. domiciled fund assets, highlighting the significant growth and popularity of passive investing strategies in recent years. Image: BofA US Equity & Quant Strategy
Flows by Year into Active vs. Passive Funds Passive funds are growing in popularity as investors prioritize lower fees, potential tax advantages, and doubt active fund managers’ ability to consistently outperform the market. As a result, active funds are facing capital outflows. Image: BofA US Equity & Quant Strategy
Share of U.S. Equity Mutual Fund and ETF AUM Passive U.S. equity funds surpassed active ones in 2020. Investors prefer them for their lower fees, potential tax benefits, and doubt in active fund managers’ ability to consistently outperform the market. Image: Goldman Sachs Global Investment Research
Passive vs. Active Rolling 6-Month Flows Flows into passive mutual funds and ETFs continue to surpass those into active funds. This trend is driven by factors such as lower costs, strong performance, and the rise of ETFs. Image: Goldman Sachs Global Investment Research
Cumulative Passive and Active Equity Flows Passive equity flows remain positive. Image: BofA Global Research
Beta Exposure of Large Cap U.S. Active Managers vs. S&P 500 Among active managers, there is a significant drop in beta exposure to GFC levels. Image: BofA US Equity & Quant Strategy
Active Global Equity Flows Outflows from active global equities persist. Image: BofA Global Investment Strategy
Active vs. Passive ETFs Will actively managed ETFs continue to shine in 2021? Image: Bloomberg
% of Large Cap Active Funds Outperforming Russell 1000 Benchmarks in May Best May in history for actively managed large-cap funds. But can active large-cap funds outperform benchmark over a full market cycle? Image: BofA US Equity & Quant Strategy
Value vs. Growth – Active Managers’ Relative Exposure in Low P/FCF vs. High Long-Term Growth Despite the rally in Value, active managers are still ~30% underweight Value vs. Growth. Image: BofA US Equity & Quant Strategy