Index funds have record year as passive wins over active
$115B in flows nearly double previous high; active takes in just $38B
U.S. investors embraced passive investing in 2013 by pouring a record $115 billion into index mutual funds, almost double the previous high.
Investor deposits into benchmark-tracking funds outstripped the $38.3 billion gathered in 2013 by actively managed mutual funds, according to data compiled by the Investment Company Institute. The previous high for index funds was $61.1 billion in 2007, the data show.
Investors have turned increasingly to index-based vehicles, especially those that track broad market benchmarks such as the S&P 500. Exchange-traded funds in the U.S., most of which follow an index and are popular with both retail and institutional investors, took in $180 billion in 2013, according to the ICI.
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