This issue of The Cerulli Edge—U.S. Monthly Product Trends analyzes mutual fund and exchange-traded fund (ETF) product trends as of August 2024 and assesses institutional investors’ allocations to private market investments.

Highlights from this research:  

• Market performance continues to buoy mutual fund assets, while ETF growth is fueled by strong inflows across asset classes.

• Mutual fund assets stood at $20.3 trillion at the end of August, growing 1.7% month over month despite outflows from active and passive mutual funds of $42.3 billion and $0.6 billion, respectively.

• ETFs posted $9.7 trillion in assets—up 30% YOY—and flows of $78 billion in August as advisors continued to turn to the structure for a growing list of exposures.

• As institutions seek to reallocate risk budgets toward private market investments, their strategies around vehicle selection are paramount to securing adequate funds. While lower-cost traditional market vehicles allow institutions to achieve this objective, the pursuit of customization often can counteract the pursuit of lower-cost funds, blurring the otherwise clearer tradeoffs between vehicles.