The largest net outflows among mutual funds in 2017 weren’t relegated to one or two areas – they came across the board: funds focused on growth, income, high-yield and various sectors, as well as one ETF.
It wasn’t pronounced underperformance that prompted advisors and investors to head for the exits; all the funds on this list were in the black for the year, posting an average gain of 19.9%. That’s nearly as strong as the 21% advance for the overall U.S. market, as measured by the Vanguard Total Market ETF.
But one common thread was active management. Of the 20 largest net outflows, 18 came from actively managed funds. Active funds lost 92% of the $94 billion that advisors and investors pulled from these 20 funds last year. That’s essentially the flip side of our data slide show late last month that showed passive funds notching the biggest net inflows. Another difference can be found in the costs: The average expense among these cash losers was 67 basis points, with a couple over 1%. The average among the (mostly passive) cash gainers last time was 31 basis points, with over half below 20 bps.
Scroll through to see the largest 2017 net outflows among mutual funds, as well as three-year annualized returns for each fund and expense ratios. All data from Morningstar.