MutualFundWire.com: With a $15B Spike, Vanguard Regains the Lead

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Thursday, February 22, 2024

With a $15B Spike, Vanguard Regains the Lead

The Low-Cost Leviathan regained the flows lead last month among large fund firms, thanks to a $15.157-billion jump in one month, according to the latest data from the folks at a publicly traded investment research firm. Meanwhile, another titan suffered a $62.984-billion drop.

Mortimer J. "Tim" Buckley
Vanguard
Chairman, CEO

This article draws from Morningstar Direct data on January 2024 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 64 firms (down month-over-month from 65 in December 2023) with between 100 and 999 long-term mutual funds and ETFs each.

Vanguard pulled into the pole position again last month, thanks to an estimated $26.779 billion in net January 2024 inflows, up M/M from $11.622 billion in December 2023 and up year-over-year from $17.497 billion in January 2023. Other big January 2024 inflows winners included: Schwab, $3.052 billion (down M/M from $3.538 billion, down Y/Y from $5.204 billion); Allianz's Pimco, $2.701 billion (up M/M from $765 million, up Y/Y from $2.406 billion); Goldman Sachs, $2.252 billion (up M/M from $541 million, up Y/Y from $472 million); and DFA, $1.975 billion (up M/M from $392 million, down Y/Y from $2.102 billion).

On the flip side, SSGA took the outflows lead last month, thanks to an estimated $17.505 billion in net January 2024 outflows, down M/M from $45.479 billion in December 2023 inflows and down Y/Y from $3.897 billion in January 2023 inflows. Other big January 2024 outflows sufferers included: T. Rowe Price, $4.284 billion (down M/M from $5.366 billion, down Y/Y from $6.018 billion); Capital Group (home of American Funds), $4.067 billion (down M/M from $9.576 billion, up Y/Y from $2.61 billion); Principal, $2.995 billion (up M/M from $813 million, up Y/Y from $432 million); and ProShares and ProFunds, $2.946 billion (up M/M from $1.668 billion, down Y/Y from $1.868 billion in net inflows).

As a group, large fund firms suffered an estimated $1.939 billion in net January 2024 outflows, ending the month with $16.708 trillion in AUM across 22,803 funds. That compares with $26.395 billion in net inflows, $16.755 trillion in AUM, and 23,401 funds in Deccember 2023.

As of January 31, 2024, large fund firms accounted for 62.8 percent of industry long-term fund AUM and 53.7 percent of industry long-term funds, after 24 large firms netted inflows last month. That compares with 63.2 percent of industry AUM and 55.2 percent of funds on December 31, 2023.

Across the industry, the 773 firms tracked by the M* team (down M/M from 782, down Y/Y from 783) brought in an estimated $35.941 billion in net January 2024 inflows, ending the month with $26.623 trillion in AUM across 42,446 funds. That compares with $57.098 billion in net inflows, $26.527 trillion in AUM, and 42,423 funds in December 2023, and with $42.682 billion in net inflows, $24.165 trillion in AUM, and 42,338 funds in January 2023.

***This caveat is particularly important for large fund firms, many of which are big players in the 401(k) business, where collective investment trusts (CITs) and separately managed accounts (SMAs) are commonly used alternatives to traditional mutual funds.

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