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Passive Overtakes Active in Mutual Fund and ETF Assets

Highlights from this research:
-Mutual funds shed $70.6 billion of assets due to flows in December, though assets still grew by $670 billion during the month due to strong market performance. Passively managed mutual funds were able to offset only $4.1 billion of the $74.7 billion of outflows from actively managed mutual funds during the month.
-Total ETF assets grew 24.5% in 2023, after seeing 10.6% growth in the second half of the year. ETF assets grew $439 billion in December, with $128 billion attributed to net inflows. Passively managed ETF flows outpaced those of actively managed by $100 billion, though actively managed posted a higher organic growth rate of 2.9% vs. 1.6%, respectively.
-A variety of asset managers are looking to launch active ETFs. While this is a natural step for many managers, the use of active exposures within the ETF structure, known for providing low-cost…

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