Active vs. Passive Fund Flows The trend of investors shifting from active to passive funds has accelerated significantly over the past decade, driven by cost considerations, performance outcomes, and evolving market practices. Image: Goldman Sachs Global Investment Research
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
U.S. Active vs. Passive Fund Net Flows Active mutual funds exhibit persistent outflows, while inflows into index-tracking U.S. mutual funds and ETFs continue to rise. Image: Bloomberg
Share of U.S. Equity Mutual Fund and ETF AUM Passive U.S. equity funds surpassed active ones in 2020. Investors prefer them due to their lower fees, potential tax benefits, and the belief that active fund managers cannot consistently outperform the market. Image: Goldman Sachs Global Investment Research
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 – Cumulative Weekly Inflow to Passive Equity Funds Will flows into passive equity funds continue to rise? Image: BofA Global Investment Strategy
U.S. Equity Funds Split Between Active and Passive Strategies Can active funds beat passive funds in a recovering U.S. economy? Image: Financial Times
The Rise of Passive Investing – Index Funds and ETFs Passive investments continue to grow. Index funds smash through the $10tn-in-assets mark. Image: Financial Times
Passive Equity and Bond Funds vs. Active Equity and Bond Funds The popularity of passive investing through ETFs and index mutual funds has grown significantly since 2010. Image: Financial Times
Flows into ETFs and Mutual Funds (Passive vs. Active) Mutual funds exhibit persistent outflows explained by aging and fees, while inflows into ETFs continue to rise. Image: Arbor Research & Trading LLC
U.S. Domiciled Funds: Active vs. Passive Record passive inflows suggest passive equity funds will surpass active in the coming years. Image: BofA Merrill Lynch US Equity & US Quant Strategy