Mutual funds make a comeback in February, Cerulli says

Mutual funds make a comeback in February, Cerulli says
Data show the first net inflows into mutual funds in roughly two years, with an unprecedented $22 billion net influx into active ETFs.
APR 02, 2024

February saw a notable inflection in the investment fund space as mutual funds witnessed net inflows for the first time since November 2021, according to the latest US Monthly Product Trends report from Cerulli Associates.

The resurgence in mutual funds, buoyed by the stock market's robust performance, saw an infusion of $13 billion to vault total assets over the $19 trillion mark for the first time in nearly two years. This represents significant growth, with assets swelling by $634 billion, or 3.4 percent, during the month.

Cerulli’s latest research says despite net outflows of $20 billion, US equity mutual funds managed to see their assets increase by 5.3 percent during February. Taxable bond mutual funds also made headlines, with net inflows of $36 billion overcoming negative market movements to achieve a $2 billion asset increase.

The report also highlights a broader trend across both ETFs and mutual funds, with total fund assets climbing by $971 billion in February. Passively managed funds led the charge, outperforming actively managed funds by $84 billion over the same period.

While passive fund flows outpaced active funds for a fifth straight month in February, it was still a pivotal period for active fund strategies, which saw net inflows for the first time since October 2021. This resurgence was predominantly driven by an unprecedented $22 billion of net inflows into active ETFs, helping to tilt the balance of actively managed fund flows into positive territory year-to-date.

ETFs in particular saw a meteoric rise, with assets surging by $337 billion thanks in part to $46 billion in flows during February. US equity, international equity, and sector equity ETFs collectively attracted $45 billion of net flows.

However, alternative ETFs stole the show, growing assets by $34 billion on the strength of nearly $6 billion of net inflows. Digital asset funds, meanwhile, attracted $5.3 billion from investors.

Actively managed bond ETFs are booming! Here's why

Latest News

Why financial honesty is key to harmonious relationships
Why financial honesty is key to harmonious relationships

Nearly half of single Americans think their net worth shapes their fate in dating, but the biggest financial green flags tell a different story.

Osaic hit with class action over cash sweep payments
Osaic hit with class action over cash sweep payments

The hybrid RIA is the latest firm to face allegations that it enriched itself at customers' expense by paying unfairly low interest rates in its cash sweep programs.

LPL's Rich Steinmeier turns the page on CEO firing with eye on firm's growth
LPL's Rich Steinmeier turns the page on CEO firing with eye on firm's growth

Installed after Dan Arnold's abrupt termination, the new leader at LPL Financial is highlighting the firm's refocusing on the individual advisor.

Pershing discussing move to control portion of broker-dealers’ cash.
Pershing discussing move to control portion of broker-dealers’ cash.

The clearing and custody giant is kicking the tires on new cash sweep plan with broker-dealer clients.

LPL, Raymond James boost advisor ranks anew
LPL, Raymond James boost advisor ranks anew

LPL Financial welcomes a $345 million investment and planning team from Ameriprise as RayJay's employee advisor arm adds a seasoned Well Fargo breakaway.

SPONSORED Taylor Matthews on what's behind Farther's rapid growth

From 'no clients' to reshaping wealth management, Farther blends tech and trust to deliver family-office experience at scale.

SPONSORED Why wealth advisors should care about the future of federal tax policy

Blue Vault features expert strategies to harness for maximum client advantage.