The numbers are in: ETFs outstripped managed funds for the first time in 2023

LiveWire01-22

Those with even a passing interest in retail finance will be aware of the popularity of exchange-traded funds (ETFs). Anecdotally, ETFs have seemed to be more popular than unlisted, open-ended funds ...

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Anecdotally, ETFs have seemed to be more popular than unlisted, open-ended funds ...</p>\n\n<a href=\"https://www.livewiremarkets.com/wires/the-numbers-are-in-etfs-outstripped-managed-funds-for-the-first-time-in-2023\">Source Link</a>\n\n</div>\n","source":"livewire_stock","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>The numbers are in: ETFs outstripped managed funds for the first time in 2023</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nThe numbers are in: ETFs outstripped managed funds for the first time in 2023\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-01-22 08:30 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.livewiremarkets.com/wires/the-numbers-are-in-etfs-outstripped-managed-funds-for-the-first-time-in-2023><strong>LiveWire</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Those with even a passing interest in retail finance will be aware of the popularity of exchange-traded funds (ETFs). Anecdotally, ETFs have seemed to be more popular than unlisted, open-ended funds ...</p>\n\n<a href=\"https://www.livewiremarkets.com/wires/the-numbers-are-in-etfs-outstripped-managed-funds-for-the-first-time-in-2023\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"LU1280957306.USD","symbol_name":"THREADNEEDLE (LUX) US CONTRARIAN CORE EQUITIES \"AUP\" (USD) INC","start_time":0,"source_url":"https://www.livewiremarkets.com/wires/the-numbers-are-in-etfs-outstripped-managed-funds-for-the-first-time-in-2023","article_id":"2405196994","we_media_id":null,"thumbnails":[],"rights":{"source":"livewire_stock","url":"https://www.livewiremarkets.com/wires/the-numbers-are-in-etfs-outstripped-managed-funds-for-the-first-time-in-2023","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2405196994","pubTimestamp":1705883435,"sourceInfo":{"source_id":"livewire_stock","name":"Livewire Markets"},"weMediaInfo":null,"summary":"Those with even a passing interest in retail finance will be aware of the popularity of exchange-traded funds . Anecdotally, ETFs have seemed to be more popular than unlisted, open-ended funds for a long while now. This is despite regular predictions of a resurgence of active stock-pickers, including during the COVID crash of 2020. During this period, even the top 20 stocks in the portfolio of lauded equity investor Warren Buffett’s Berkshire Hathaway fell around 35%.However, the much-anticipated golden period for active funds never emerged. Many fund managers have returned impressive returns but figures from both the US and Australian markets indicate more investor dollars are flowing into passive funds than active.For the first time ever, the total assets under management in passive funds in the US outstripped active funds in 2023 – albeit narrowly. Passively managed funds – including ETFs and index funds – held US$13.29 trillion at the end of 2023, versus US$13.23 trillion held in a","collect":0,"end_time":0,"defaultTopTitle":"livewiremarkets.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"LU1280957306.USD":"THREADNEEDLE (LUX) US CONTRARIAN CORE EQUITIES \"AUP\" (USD) INC","IE00BKDWB100.SGD":"PINEBRIDGE US LARGE CAP RESEARCH ENHANCED \"A5H\" (SGDHDG) ACC","LU1914381329.SGD":"Allianz Best Styles Global Equity Cl ET Acc H2-SGD","LU0234572021.USD":"高盛美国核心股票组合Acc","BK4176":"多领域控股","XAO.AU":"标普/澳交所 普通股指数","ACDC.AU":"GLOBAL X BATTERY TECH & LITH","VDHG.AU":"VANGUARD DIVFY HIGRO IDX ETF","NDQ.AU":"BETASHARES NASDAQ 100 ETF","XJO.AU":"标普/澳交所 200指数","LU0251142724.SGD":"Fidelity America A-SGD","LU1363072403.SGD":"Fidelity Global Financial Services A-ACC-SGD","VDGR.AU":"VANGUARD DIVFY GRO IDX ETF","XKO.AU":"标普/澳交所 300指数","IE00BWXC8680.SGD":"PINEBRIDGE US LARGE CAP RESEARCH ENHANCED \"A5\" (SGD) ACC","LU0980610538.SGD":"Natixis Harris Associates US Equity RA SGD-H","BK4534":"瑞士信贷持仓","BK4585":"ETF&股票定投概念","SEMI.AU":"ETFS Semiconductor ETF","LU1201861249.SGD":"Natixis Harris Associates US Equity PA SGD-H","BK4533":"AQR资本管理(全球第二大对冲基金)","BRK.B":"伯克希尔B","LU0648001328.SGD":"Natixis Harris Associates US Equity RA SGD","RBTZ.AU":"BETASHARES GB ROBOT N AI","IVV.AU":"ISHARES S&P 500 ETF/AUS","LU0971096721.USD":"富达环球金融服务 A","LU0640476718.USD":"THREADNEEDLE (LUX) US CONTRARIAN CORE EQ \"AU\" (USD) ACC","LU1074936037.SGD":"JPMorgan Funds - US Value A (acc) SGD","LU0149725797.USD":"汇丰美国股市经济规模基金","IWLD.AU":"ISHARES MSCI WLD X OZ ESG","LU0256863811.USD":"ALLIANZ US EQUITY \"A\" INC","BK4550":"红杉资本持仓","LU0742534661.SGD":"Fidelity America A-SGD (hedged)","LU1571399168.USD":"ALLSPRING GLOBAL LONG/SHORT EQUITY \"IP\" (USD) ACC","BK4588":"碎股","VAS.AU":"VANGUARD AUST SHARES IDX ETF","LU0130102774.USD":"Natixis Harris Associates US Equity RA USD","IE00B775SV38.USD":"NEUBERGER BERMAN US MULTICAP OPPORTUNITIES \"A\" (USD) ACC","IE00B3S45H60.SGD":"Neuberger Berman US Multicap Opportunities A Acc SGD-H","LU0234570918.USD":"高盛全球核心股票组合Acc Close","LU0048573561.USD":"FIDELITY AMERICA \"A\" (USD) INC","LU0417517546.SGD":"Allianz US Equity Cl AT Acc SGD","LU0053666078.USD":"摩根大通基金-美国股票A（离岸）美元","FDN":"First Trust Dow Jones Internet I","BK4581":"高盛持仓","IE00B1XK9C88.USD":"PINEBRIDGE US LARGE CAP RESEARCH ENHANCED \"A\" (USD) ACC"},"translate_title":"数据出来了：ETF在2023年首次超过了管理基金","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"IWLD.AU":1,"IVV.AU":1,"ACDC.AU":1,"VDHG.AU":1,"VDGR.AU":1,"VAS.AU":1,"SEMI.AU":1,"NDQ.AU":1,"RBTZ.AU":1,"XKO.AU":0.9,"FDN":0.9,"XAO.AU":0.9,"XJO.AU":0.9,"BRK.B":0.68},"content_text":"Those with even a passing interest in retail finance will be aware of the popularity of exchange-traded funds (ETFs). Anecdotally, ETFs have seemed to be more popular than unlisted, open-ended funds for a long while now. This is despite regular predictions of a resurgence of active stock-pickers, including during the COVID crash of 2020. During this period, even the top 20 stocks in the portfolio of lauded equity investor Warren Buffett’s Berkshire Hathaway fell around 35%.\nHowever, the much-anticipated golden period for active funds never emerged. Many fund managers have returned impressive returns but figures from both the US and Australian markets indicate more investor dollars are flowing into passive funds than active.\nFor the first time ever, the total assets under management in passive funds in the US outstripped active funds in 2023 – albeit narrowly. Passively managed funds – including ETFs and index funds – held US$13.29 trillion at the end of 2023, versus US$13.23 trillion held in active funds.\nA similar trend occurred in the Australian retail market last year, where $15 billion flowed into ETFs, versus a -$36.9 billion outflow among active funds.\n\n\n\n\n\n\n\n\n\nSource: Morningstar, Betashares\nLooking over a longer timeframe, stretching back to 2001 when the first local ETFs became available, the cumulative net flows into Australian unlisted managed funds are now negative – a point emphasised by ETF provider Betashares in its latest 2023 ETF Review.\n“This clear investor preference for ETFs, plus the increasing ‘conversion’ activity we’re seeing of unlisted managed funds into Active ETFs, represents a significant ‘changing of the guard’ in the Australian asset management industry,” said Betashares' Ilan Israelstam recently.\nThe Australian ETF industry ended the year at an all-time high, with a total industry market capitalisation of $177.5 billion as of the end of 2023. The 33% growth, which saw ETFs' fund under management (FUM) grow by $43.7 billion year-on-year, also set a new record.\nLast year was the biggest year for new ETF products, with an additional 56 funds listed, up from 52 in 2022. Many of these were active ETFs – exchange-traded managed funds – as the trend for asset managers to launch listed versions of their managed funds continued.\nETFs' grassroots popularity on display\nThe appeal of ETFs has long been evident among our audience here at Livewire Markets. These investment vehicles are often a big feature of the successful portfolios held by readers we speak to as part of Livewire’s Meet The Investor editorial series.\nFor example, Stefan built up a portfolio comprised primarily of ETFs, using dollar-cost-averaging to establish his holdings. Some of the ETFs he held at the time of publication were:\n\nVanguard Australian Shares Index ETF (ASX: VAS) \nBetashares Nasdaq 100 ETF (ASX: NDQ) \niShares Core MSCI World Ex Aus ESG Leaders ETF (ASX: IWLD)\nBetashares Global Robotics ad Artificial Intelligence ETF (ASX: RBTZ)\nSpotify Technology (NASDAQ: SPOT)\n\nOne of these, the Betashares Nadaq 100 ETF, featured in our recent wrap of top-performing ETFs of 2023.\nA similar passive-led strategy is pursued by another Meet The Investor interviewee, Pete, who described his successful approach as “Boring, passive, low-cost, diversified.”\nAnd another, a warehouse worker named Dave, said: “To describe the strategy now: it’s essentially a small group of relatively boring and diversified investments, with a focus mostly on the yearly cash flow it spits out.”\nThen there's 25-year-old investor, Jackson, who started dabbling in passive investing while he was still a high school student. His portfolio leans heavily on broad-market index funds.\nAlongside a couple of those mentioned by Stefan, his portfolio also included iShares S&P 500 ETF (ASX: IVV)\n“For balance, I will note that active management can have benefits for portfolio construction and as a way to act on short-term themes, alongside other rationales,” Jackson said.\n“However, over the long term and for the majority of investors in Australia, simply doing the average thing over a long enough timeframe, can have extraordinary benefits.”\nYet another young investor who was featured in Meet The Investor, Stephanie, outlined why thematic ETFs are her preferred investment vehicles.\n“As a young investor, I'm working with a relatively small portfolio, which means that brokerage fees can significantly impact my returns. Therefore, actively managing a diversified portfolio of individual stocks would likely be unprofitable,” she said.\nSome of Stephanie's biggest investments included:\n\nGlobal X Semiconductor ETF (ASX: SEMI)\nGlobal X Battery Tech & Lithium ETF (ASX: ACDC)\nVanguard Diversified Growth Index ETF (ASX: VDGR)\nVanguard Diversified High Growth Index ETF (ASX: VDHG) \n\nWill passive's dream run continue?\nWe've seen it happen countless times in the investment space – hubris has a habit of catching up with even the most successful fund managers. The seemingly inexorable rise of ETFs with retail investors could come to a halt for any number of reasons: unforeseen performance issues, malpractice, regulatory changes – or even just shifting preferences among the fickle retail investor audience. Only time will tell whether the popularity of ETFs will continue.\n\nDo you invest in ETFs?\nGet in touch via the comments below to tell us what you think of exchange-traded funds and any favourites from your own portfolio.\n\n\n\nNever miss an update\n\n    Enjoy this wire? Hit the ‘like’ button to let us know. \n    Stay up to date with my current content by \n    following me below and you’ll be notified every time I post a wire","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":1,"commentSize":0,"repostSize":1,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.1","shortVersion":"4.29.1","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2405196994"}