After a year in which its actively managed mutual funds saw big outflows, Fidelity Investments has increased the availability of institutional share classes and is adding new index funds.
It's been a tough year for the Boston-based financial services company. Morningstar reported that while Fidelity saw $16.6 billion of funds flow into its passively managed mutual funds for the year ending April 16, it saw almost $28.5 billion flow out of its actively managed mutual funds. The company managed $211 billion in passively managed funds, and $975 billion in actively managed funds.
Recommended For You
In addition to expanding availability of its institutional share classes to investors on and off the Fidelity platform — both its institutional and institutional premium share classes are available to both retail and intermediary investors provided they meet eligibility requirements — the company is also replacing the Spartan name on its index fund lineup with Fidelity. It is also offering three new equity mutual funds — the Fidelity Large Cap Growth Index Fund, Fidelity Large Cap Value Index Fund, and Fidelity Total International Index Fund.
Fidelity said that its passive/index offerings complement its active strategies and pointed out that even its active equity mutual funds have some of the lowest costs in the industry.
Malvern, Pennsylvania-based Vanguard, on the other hand, manages far more in passive funds than in active funds. Morningstar data said that Vanguard's passive funds total $2.3 trillion under management, while its active funds total $812 billion.
Overall, Morningstar said that long-term actively managed funds saw $297 billion of outflows for the year ending April 16, while passive funds saw $378 billion of inflows during the same period. But more money is in actively managed funds, at $9.5 trillion, than in passive funds, which total $4.7 trillion.
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
