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

Northern Trust names new West Region president for wealth
Northern Trust names new West Region president for wealth

The new regional leader brings nearly 25 years of experience as the firm seeks to tap a complex and evolving market.

Capital Group extends retirement plan services further with a focus on advisors
Capital Group extends retirement plan services further with a focus on advisors

The latest updates to its recordkeeping platform, including a solution originally developed for one large 20,000-advisor client, take aim at the small to medium-sized business space.

Why RIAs are the next growth frontier for annuities
Why RIAs are the next growth frontier for annuities

David Lau, founder and CEO of DPL Financial Partners, explains how the RIA boom and product innovation has fueled a slow-burn growth story in annuities.

Supreme Court slaps down challenge to IRS summons for Coinbase user data
Supreme Court slaps down challenge to IRS summons for Coinbase user data

Crypto investor argues the federal agency's probe, upheld by a federal appeals court, would "strip millions of Americans of meaningful privacy protections."

Houston-based RIA Americana Partners adds $1B+ with former Morgan Stanley director
Houston-based RIA Americana Partners adds $1B+ with former Morgan Stanley director

Meanwhile in Chicago, the wirehouse also lost another $454 million team as a group of defectors moved to Wells Fargo.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.