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Industry Trends: Rising Popularity of Index Investing

Passive Inflows Mirror Active Outflows 

Cumulative flows to and net share issuance of domestic equity mutual funds and index ETFs

(dollars in billions) (January 2009–December 2019) 

1,25062501,875(1,000)(500)$2,500(1,500)’09’10’11’12’13’14’15’16’19’18’17PASSIVEACTIVEActively managed domestic equity mutual funds experienced a net outflow of $1.4 trillion

Note:  Mutual fund data includes net new cash flow and reinvested dividends; ETF data for net share issuance includes reinvested dividends

Sources:  Morningstar and S&P Dow Jones Indices

Passive Investing: 21% CAGR Globally 

ETF & ETN Growth Across Regions

AUM by Listing Region (dollars in billions)

1,2502,5003,750$5,000 EMEAAPACAmericas+20%+23%+25%$2,199$4,608$443$1,021$265$646

Equity Flows Remain Basically Flat

Equity ETP Flows

Global Cumulative Flows (dollars in billions)

0125250375$500

Record Inflows into Fixed-Income Funds Despite Low Interest Rates

Fixed Income ETP Flows

Global Cumulative Flows (dollars in billions)

060120180$240DecNovOctSepAugJulJunMayAprMarFebJan

The Strategic Beta ETP Market Is Maturing

Strategic Beta Equity ETP Flows

Global Cumulative Flows (dollars in billions)

0255075$100DecNovOctSepAugJulJunMayAprMarFebJan

Attracting New ESG Assets at a Record Pace

ESG ETP Flows

Global Cumulative Flows (dollars in billions) 

0102030$40DecNovOctSepAugJulJunMayAprMarFebJan

Sources:  Morningstar and S&P Dow Jones Indices

Note:  The ETP (or exchange-traded product) category encompasses any portfolio exposure security that trades intra-day on an exchange

Indices can be used as the basis for liquid, investable products and as benchmarks for actively managed fund performance