Vanguard adds record $305 billion in 2016

Vanguard adds record $305 billion in 2016
While most of the money went into index funds, $50 billion flowed into active funds that buy bonds or a mix of stocks and bonds.
JAN 19, 2017
By  Bloomberg
Vanguard Group, the world's largest mutual fund manager, said it attracted a record $305 billion last year — an annual total that some firms need decades to reach. Vanguard's take, which tops the firm's previous record of $276.4 billion in 2015, includes $93 billion that went into exchange-traded funds, up from $76 billion the year before, spokesman John Woerth wrote in an e-mail. While the bulk of the money flowed into products that track indexes, more than $50 billion was absorbed by active funds that buy bonds or a mix of stocks and bonds, Mr. Woerth said. Eaton Vance Corp., a medium-sized money manager founded in 1979, had $336 billion in assets under management as of Oct. 31. Vanguard is prospering at a time when other money managers are struggling to hold on to investor cash. Thirty of the 50 largest mutual fund firms suffered net redemptions in the first 11 months of the year, according to data from Morningstar Inc. Funds run by managers who pick stocks and bonds had outflows of $286 billion in the first 11 months while investors added $428.6 billion to passive mutual funds and ETFs. BlackRock Inc., the world's largest money manager, is also benefiting from the shift to passive investing. The firm had about $93 billion in long-term flows, which doesn't include money market products, in the first three quarters of 2016, according to filings. That compares with $278 billion for Vanguard's long-term flows for the full year. BlackRock reported on Jan. 3 that it attracted $107 billion to its U.S. ETFs in 2016 and an additional $32 billion to its European products. Globally, net inflows into ETFs reached $375 billion last year, surpassing the previous year's $348 billion. The vast majority of ETFs track indexes.

Latest News

Slow is smooth, smooth is fast
Slow is smooth, smooth is fast

Chasing productivity is one thing, but when you're cutting corners, missing details, and making mistakes, it's time to take a step back.

Edward Jones layoffs about to hit employees, home office staff
Edward Jones layoffs about to hit employees, home office staff

It is not clear how many employees will be affected, but none of the private partnership’s 20,000 financial advisors will see their jobs at risk.

CFP Board hails record July exam turnout with 3,214 test-takers
CFP Board hails record July exam turnout with 3,214 test-takers

The historic summer sitting saw a roughly two-thirds pass rate, with most CFP hopefuls falling in the under-40 age group.

Founder of water vending machine company, portfolio manager, charged in $275M Ponzi scheme
Founder of water vending machine company, portfolio manager, charged in $275M Ponzi scheme

"The greed and deception of this Ponzi scheme has resulted in the same way they have throughout history," said Daniel Brubaker, U.S. Postal Inspection Service inspector in charge.

Advisor moves: Raymond James, Wells Fargo reel in billion dollar-plus advisor teams
Advisor moves: Raymond James, Wells Fargo reel in billion dollar-plus advisor teams

Elsewhere, an advisor formerly with a Commonwealth affiliate firm is launching her own independent practice with an Osaic OSJ.

SPONSORED Delivering family office services critical to advisor success

Stan Gregor, Chairman & CEO of Summit Financial Holdings, explores how RIAs can meet growing demand for family office-style services among mass affluent clients through tax-first planning, technology, and collaboration—positioning firms for long-term success

SPONSORED Passing on more than wealth: why purpose should be part of every estate plan

Chris Vizzi, Co-Founder & Partner of South Coast Investment Advisors, LLC, shares how 2025 estate tax changes—$13.99M per person—offer more than tax savings. Learn how to pass on purpose, values, and vision to unite generations and give wealth lasting meaning