This issue of The Cerulli Edge—U.S. Monthly Product Trends analyzes product trends as of November 2023, including mutual funds and exchange-traded funds (ETFs), and explores the rise of separately managed accounts (SMAs).

Highlights from this research:

• Total mutual fund assets grew 6.6% in 3Q, to end the quarter at $17.7 trillion. Mutual funds in all asset classes other than commodities grew assets in November despite all being in outflows during the month.

• ETF assets grew to a new all-time high to $7.6 trillion in November as they gathered $107 billion of net inflows during the month, the highest since December 2021. Active ETFs accounted for 19% of ETF inflows as they topped $20 billion of inflows for the first time.

• Wealth management providers have made increased adoption of fee-based managed accounts, both overall and specifically unified managed accounts (UMAs), a core element of their strategic priorities. Incremental technology upgrades have lowered the investment minimums necessary for clients to invest in and customize their holdings in SMA offerings on both a standalone basis and within UMA programs. To optimize their addressable opportunity, asset managers must be prepared to offer the breadth of their intellectual property through separate accounts in a variety of delivery options to wealth managers that sponsor separate account and UMA programs.