Active funds' inflows fell by 40 percent, and passive inflows fell by 29 percent ... despite a 59 percent increase in passive inflows at a low-cost leviathan.

Mortimer J. "Tim" Buckley Vanguard President, CEO

This article draws from Morningstar Direct data on July 2021 open-end mutual fund and ETF flows, excluding money-market funds and funds of funds. The data also excludes other asset management products, like SMAs and CITs.***

BlackRock took the lead last month on the active side, thanks to an estimated $3.024 billion in net July 2021 inflows, down month-over-month from $3.163 billion in June 2021 and down year-over-year from $3.136 billion in July 2020. Other big July 2021 active inflows winners included: TIAA's Nuveen, $2.887 billion (up M/M from $1.252 billion, up Y/Y from $105 million); J.P. Morgan, $2.719 billion (down M/M from $3.969 billion, down Y/Y from $5.401 billion); Vanguard, $2.232 billion (down M/M from $3.609 billion, down Y/Y from $4.548 billion); and Lord Abbett, $1.989 billion (up M/M from $1.847 billion, up Y/Y from $1.425 billion).

Vanguard kept the lead yet again on the passive side, thanks to an estimated $34.197 billion in net July 2021 passive inflows, up M/M from $21.562 billion in June 2021 and up Y/Y from $5.61 billion in July 2020. Other big July 2021 passive inflows winners included: Fidelity, $11.076 billion (down M/M from $14.92 billion, up Y/Y from $3.31 billion); BlackRock, $6.824 billion (down M/M from $17.263 billion, down Y/Y from $18.532 billion); Charles Schwab, $3.593 billion (down M/M from $4.008 billion, up Y/Y from $684 million); and KraneShares, $1.91 billion (up M/M from $599 million, up Y/Y from $341 million).

On the flip side, last month was a rough one for Fidelity's active mutual funds, which led the active outflows pack thanks to an estimated $3.516 billion in net active July 2021 outflows, down M/M from $1.043 billion in June 2021 active inflows and down Y/Y from $3.738 billion in July 2020 active outflows. Other big July 2021 active outflows sufferers included: Franklin Templeton, $3.435 billion (down M/M from $695 million in net inflows, up Y/Y from $2.047 billion); T. Rowe Price, $2.344 billion (down M/M from $3.639 billion, up Y/Y from $382 million); Ark, $1.535 billion (down M/M from $994 million in net inflows, down Y/Y from $1.49 billion in net inflows); and Payden, $1.053 billion (up M/M from $21 million, down Y/Y from $85 million in net inflows).

Invesco led the outflows pack on the passive mutual fund side last month, thanks to an estimated $2.149 billion in net passive July 2021 outflows, down M/M from $6.029 billion in June 2021 passive inflows and down Y/Y from $2.089 billion in July 2020 passive inflows. Other big July 2021 passive outflows sufferers included: SSGA, $1.66 billion (down M/M from $10.598 billion in net inflows, up Y/Y from $1.24 billion); USCF, $371 million (down M/M from $385 million, down Y/Y from $769 million); Ameriprise's Columbia Threadneedle, $290 million (up M/M from $102 million, up Y/Y from $118 million); and SEI, $287 million (down M/M from $414 million, up Y/Y from $6 million).

Industrywide, the 709 active fund firms tracked by the M* team (up M/M from 703 in June 2021 and up Y/Y from 708 in July 2020) brought in an estimated $14.693 billion in net active inflows in July 2021, accounting for 20 percent of overall industry long-term inflows. That's down from $24.587 billion and 23 percent in June 2021, but it compares with $12.052 billion and 29 percent in July 2020. 389 firms gained net active inflows in July 2021, down M/M from 401 but up Y/Y from 198.

The 149 passive fund firms (up M/M from 148 and up Y/Y from 141) tracked by the M* team brought in an estimated $57.431 billion in net passive inflows in July 2021, accounting for 80 percent overall industry long-term inflows. That compares with $80.917 billion and 77 percent in June 2021 and $29.381 billion and 71 percent in July 2020. 77 firms gained net passive inflows in July 2021, down M/M from 94 but up Y/Y from 71.

*** 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) are a commonly used alternative to traditional mutual funds. For example, as the T. Rowe team revealed on August 11, in July 2021 their clients transferred about $300 million out of T. Rowe mutual funds and into other T. Rowe products like CITs and SMAs. (T. Rowe clients made $15.1 billion of such transfers in the first seven months of 2021). And T. Rowe is a big retirement plan provider and DC I-O asset manager, especially in the target-date fund (TDF) space. 

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