Passive funds gain inflows of US$4.6bn - US Monthly Fund Highlights - September 2019

Active long-term funds saw net outflows increase slightly during September, reaching US$13.6 billion after net redemptions of US$11.3 billion during August.

Passive funds experienced a significant rebound in flows during September, gaining inflows of US$46.8 billion after a rare month of outflows at US$1.1 billion in August. ETFs led inflows in September at US$38.5 billion, having been primarily responsible for aggregate net redemptions during the prior month at US$8.2 billion.

Taxable Bond funds continued as the top inflow-gathering asset class when combining active and passive demand during the first nine months of the year. The US$285.3 billion garnered in the YTD period surpassed the inflows seen by the long-term market as a whole at US$259.2 billion.

Even as aggregate inflows rebounded in September, Money Market inflows suggest that many investors remained in highly defensive postures. Money Market funds outpaced the long-term fund market in both September and the first nine months of the year.