The Standard & Poor's 500 roared to a 1.98% gain in January, and investors yawned. The first winning January since 2013 should have cheered investors: A winning January agurs an up year 80% of the time. Yet U.S. stock funds saw a net inflow of just $20 million in January, while taxable bond funds saw $18.9 billion in net new cash, according to Morningstar. For the past 12 months — a time in which the S&P 500 jumped 20.0%, including reinvested dividends — investors have yanked $147.3 billion from U.S. stock funds, while lavishing taxable bond funds with $146.9 billion of new money. Investors had slightly more love for international stock funds, which saw a net inflow of $5.6 billion in January. Muni bond funds had an inflow of $3.9 billion. All other categories — sector equity, allocation, alternative and commodity — saw net outflows. In a surprise to no one, Vanguard saw the largest inflow in January, raking in $31.8 billion. In the past 12 months, the fund company has seen an estimated net inflow of $196.8 billion. Other fund companies saw more modest inflows in January. The American Funds welcomed $1.5 billion in new money, and Dimensional Fund Advisors saw $3.6 billion roll in the door. Fidelity Investments, however, watched $5 billion head for the exits. A flood of money — $14.5 billion — streamed from actively managed funds in January, while $38 billion flowed into passively managed long-term funds. Who was doing all the selling? The non-proprietary distribution channel, which Morningstar defines as "Fund share classes sold primarily through active broker/dealers who have licensing agreements with the fund company." That channel saw $15.8 billion flee from all Morningstar categories. Institutional funds welcomed $16.3 billion in net new cash.
A $141M judgment and a federal asset freeze collide over one shrinking pool
The firm's CFO and EVP of Wealth Management Solutions are the latest executives to exit the broker-dealer.
Clients are saying they would consider switching advisors if another professional offered estate planning services, according to a new Trust & Will survey.
CEO Laurel Taylor says the fintech's composable AI stack helps workers optimize dollars across Trump Accounts, 529s, 401(k)s, and other employee benefits.
The bank has swiped three private banking veterans from BNY as the city climbs the ranks of America's fastest-growing wealth hubs.
Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income
Direct indexing is on pace to outgrow ETFs and mutual funds. Northern Trust's Ken Lassner explains why the advisors who get it wish they had started sooner.