Passively Managed Mutual Funds Pace Net Inflows for U.S. Diversified Equity Mutual Funds

For the year to date Lipper’s Multi-Cap Core Funds classification has seen the largest net inflows (+$8.0 billion) in its U.S. Diversified Equity Funds (USDE) macro-classification. Lipper defines a diversified equity fund as one that invests across economic sectors. The USDE macro-classification currently has 20 unique categories within it.

The positive net flows for 2015 for the Multi-Cap Core group are a continuation of a recent trend; Multi-Cap Core Funds also took in the most net new money among the USDE categories for both 2013 (+$29.1 billion) and 2014 (+$31.2 billion). Within the Multi-Cap Core group Vanguard Total Stock Market Index Fund has been responsible for the majority of the net inflows since 2013. Vanguard Total Stock Market Index Fund has grown its coffers by $6.4 billion in 2015, and it also added $33.0 billion and $17.2 billion for 2014 and 2013, respectively. These net inflows are the largest by far for a single fund in each period. Multi-Cap Core Funds is now the largest classification by assets (+$794.8 billion) within the USDE macro-classification.

S&P 500 Index Funds has had the second largest positive net flows for the USDE group for the year to date as well as for 2014. S&P 500 Index Funds has taken in $5.5 billion for 2015, after receiving $12.3 billion of net new money for 2014. The group also experienced positive net flows (+$3.7 billion) for 2013 but was somewhat lower down on the USDE ranking (seventh) for net flows.

Conversely, Large-Cap Growth Funds has been responsible for the largest net outflows in each period. Large-Cap Growth Funds has seen $20.2 billion, $17.9 billion, and $5.3 billion leave for each year since the end of 2012. Fidelity Contrafund and American Funds Growth Fund of America experienced significant outflows for each interval. Fidelity Contrafund saw $11.0 billion leave for 2014 and $1.5 billion so far this year; each of these net outflows was the largest in the Large-Cap Growth category. American Funds Growth Fund of America had $9.8 billion and $8.1 billion of net outflows for 2013 and 2014, respectively. The fund’s outflows for 2013 were the largest within the group, while its 2014 results ranked second to Contrafund’s.