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Vanguard Net Fund Inflow Dwarfed Its Peers' In 2016

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Drawn by low fees and market-mimicking performance, shareholders flooded Vanguard mutual funds and ETFs with more net inflow in 2016 than other fund families combined received, according to Morningstar Inc.

Vanguard's net inflow for 2016 was $277.257 billion. Combined with inflow to its funds outside the U.S., Vanguard's total net inflow was $289 billion.

Worldwide flows to all other fund families combined was $244 billion.

Vanguard's U.S. passive mutual funds and ETFs garnered $256.89 billion in net inflow, or 89% of the total. The group's active funds pulled in another net $20.367 billion.

BlackRock ( BLK ) had the second-highest inflow among fund families with the most overall assets. Its passive funds - including those under its iShares ETFs nameplate - attracted $117.898 billion in net inflow, offsetting $18.467 billion in net outflow among its actively managed funds.

SPDR State Street Global Advisors' drew $53.091 billion in net inflow to its passive strategies plus another $1.616 billion net to its active funds.

Fidelity's passive funds lured $37.186 billion in net inflow while its active funds saw $60.451 billion in net redemptions.

Morningstar editor Tom Lauricella and senior analyst Alina Lamy noted in a report, "While much of the attention has been on the active/passive divide in flows, the final months of 2016 saw a sharp shift in investor preferences to U.S. stocks and against bonds. Thanks to the record flows into passive U.S. equity funds, the overall inflows tally for U.S. stock funds hit its highest monthly total since April 2000, at $27.8 billion."

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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