The total net assets of the different types of index mutual funds in the United States generally increased, albeit with some fluctuation, from 2000 to 2023. In 2023, the net assets of the S&P 500 index amounted to a value of approximately 1.7 trillion U.S. dollars. In that same year, the net assets of other domestic equity and world equity amounted to approximately 2.4 trillion and 709 billion U.S. dollars, respectively. The total net assets of hybrid and bond index funds amounted to a value of approximately one billion U.S. dollars in 2023.

The number of the different types of index mutual funds in the United States varied greatly, with each category displaying a different pattern from 2000 to 2023. The number of S&P 500 index funds generally decreased during the period under observation, while the number of other domestic equity funds generally increased. The number of world equity funds and hybrid and bond funds also generally increased during the time period, although to a smaller degree and with some fluctuation. At the end of 2023, there were 76 S&P 500 funds, 265 other domestic equity funds, 90 world equity funds, and 85 hybrid and bond funds.

Graph and download economic data for Mutual Funds; Total Financial Assets, Market Value Levels (BOGZ1LM654090000Q) from Q4 1945 to Q1 2025 about mutual funds, assets, and USA.

The US Mutual Fund Market is Segmented by Fund Type (Equity, Bond, Hybrid, and More), by Investor Type (Retail, Institutional), by Management Style (Active, Passive), and by Distribution Channel (Online Trading Platform, Banks, Securities Firm, Others). The Market Forecasts are Provided in Terms of Value (USD).

The total net assets of both actively-managed mutual funds and passively-managed index mutual funds in the United States generally increased, albeit with some fluctuation, from 2000 to 2023. In 2023, the total net assets of active funds amounted to a value of almost ***** trillion U.S. dollars. The total net assets of index funds amounted to a value of roughly *** trillion U.S. dollars in 2023.

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Graph and download economic data for Rest of the World; U.S. Mutual Fund Shares; Asset, Transactions (ROWMFSA027N) from 1946 to 2024 about mutual funds, IMA, transactions, assets, and USA.

Broad Based Index Fund Market Outlook

The global broad-based index fund market size was valued at USD 5.3 trillion in 2023 and is projected to reach USD 11.2 trillion by 2032, growing at a compound annual growth rate (CAGR) of 8.5% during the forecast period. This substantial growth is driven by increasing investor interest in passive investment strategies, along with the rising emphasis on cost-effective and diversified portfolio management.

The surge in demand for broad-based index funds can be attributed to several key growth factors. Firstly, the growing awareness and education about the benefits of passive investing over active management have played a significant role. Investors are increasingly leaning towards index funds due to their lower expense ratios, tax efficiency, and the ability to provide broad market exposure with minimal effort. Secondly, technological advancements and the rise of fintech have made these funds more accessible to a wider audience through online platforms and robo-advisors, democratizing investment opportunities for retail investors globally. Lastly, regulatory changes in many regions are encouraging greater transparency and lower fees in the financial services industry, which further bolsters the attractiveness of index funds as a preferred investment vehicle.

The popularity of broad-based index funds is also bolstered by their performance resilience during market volatility. Historical data indicates that while actively managed funds often struggle to outperform the market consistently, index funds tend to provide more stable returns over the long term. This trend has been particularly noticeable during economic downturns and periods of market uncertainty, where investors seek the relative safety and predictability offered by broad-based diversified portfolios. Additionally, the increased focus on retirement planning and the shift from defined benefit to defined contribution retirement plans have spurred the growth of index funds as they are often the preferred choice in retirement accounts due to their long-term growth potential and lower costs.

The regional outlook for the broad-based index fund market highlights significant growth potential across various geographies. North America, particularly the United States, remains the largest market for index funds, driven by the deep-rooted culture of investing and a well-established financial infrastructure. Europe follows closely, with growth fueled by regulatory support and increasing investor awareness. The Asia Pacific region is expected to witness the highest growth rate, propelled by the burgeoning middle class, rising disposable incomes, and increasing penetration of financial services. Latin America and the Middle East & Africa are also anticipated to demonstrate steady growth as financial markets in these regions continue to develop and mature.

Mutual Funds Sales have seen a notable uptick as investors increasingly seek diversified investment options that align with their financial goals. This trend is particularly evident in the context of broad-based index funds, where mutual funds offer a structured approach to investing in a wide array of assets. The appeal of mutual funds lies in their ability to pool resources from multiple investors, enabling access to a diversified portfolio that might otherwise be unattainable for individual investors. This collective investment model not only reduces risk but also provides investors with professional management and oversight. As the financial landscape evolves, mutual funds continue to play a crucial role in facilitating access to index funds, thereby driving sales and expanding their market presence.

Fund Type Analysis

Equity index funds represent a significant portion of the broad-based index fund market. These funds track a variety of stock indices, such as the S&P 500, NASDAQ, and MSCI World Index, providing investors with exposure to a wide array of equity markets. The appeal of equity index funds lies in their ability to offer broad market diversification at a low cost. Investors benefit from the lower fees associated with passive management and the reduced risk of individual stock selection. As a result, equity index funds have become a staple in both retail and institutional portfolios, driving robust demand and growth in this segment.

Bond index funds, though smaller in market share compared to their equity counterparts, are gaining traction as investors seek stable income and risk diversifi

Graph and download economic data for Rest of the World; U.S. Mutual Fund Shares; Asset, Market Value Levels (BOGZ1LM263064203Q) from Q4 1945 to Q1 2025 about mutual funds, market value, assets, and USA.

Graph and download economic data for Rest of the World; U.S. Mutual Fund Shares; Asset, Market Value Levels (BOGZ1LM263064203A) from 1945 to 2024 about mutual funds, market value, assets, and USA.

The total global net assets of mutual funds registered in the United States amounted to approximately 25.5 trillion U.S. dollars in 2023, compared to around 5.53 trillion U.S. dollars in 1998. Mutual funds - additional information Mutual funds are investment funds in which the capital is pooled from a number of different investors and then used to buy securities such as stocks, bonds or money market instruments. Although investing in mutual funds, rather than direct investment in individual securities, still presents a certain degree of risk, it has become more and more common practice around the world. One of the biggest advantages of this type of investment is the fact that the fund assets are managed by professionals, who aim to eliminate some of the risk involved in investing in individual stocks and bonds through diversification of assets. As of 2022, there were almost 7,400 mutual funds domiciled in the United States. There are four main types of mutual funds, categorized by the nature of their principal investments, namely: stock or equity funds (whether domestic or international), bond or fixed income funds, money market funds and hybrid funds. In 2022, domestic equity funds were the most popular category in the United States, representing 46 percent of all mutual fund and ETF assets.

The North America Mutual Fund Market is Segmented by Fund Type (Equity, Bond, Hybrid, and More), by Investor Type (Retail, Institutional), by Management Style (Active, Passive), by Distribution Channel (Online Trading Platform, Banks, Securities Firm, Others), and by Country (USA, Canada, Mexico). The Market Forecasts are Provided in Terms of Value (USD).

In 2023, 52 percent of the households in the United States owned shares in a mutual fund. This is a significant increase on the 5.7 percent recorded in 1980, but close to 46.3 percent found in 2013.Mutual fundsA mutual fund is a variety of collective investment vehicle, managed professionally that pools money from many investors in order to purchase securities. They play an important role in household finances in the United States of today, most notably in retirement planning. It is commonly applied only to the forms of collective investment that are regulated and are sold to the public at large. The majority of mutual funds are what is known as ‘open-ended’, meaning that shares can be bought or sold at anytime. There are a number of advantages associated with mutual funds as opposed to direct investment in individual securities. The nature of the fund as a collective investment vehicle provides increased diversification and ease of comparison to investors. The fact that they are managed professionally, and that the investment is pooled, enables participation in investments that would normally only be available to larger investors. Mutual funds are also stable in price as daily liquidity ensures minimum loss of value. Despite several advantages, as with every aspect of investment some disadvantages are to be taken into account. Fees are an inevitable part of a professionally managed fund, as is the inability to customize the investment. A common complains is also that the investor has less control over timing of the recognition of their gains.

The North American mutual fund industry, a cornerstone of personal and institutional investment, is experiencing robust growth, projected to maintain a Compound Annual Growth Rate (CAGR) exceeding 5% from 2025 to 2033. This expansion is fueled by several key factors. Increasing retail investor participation, driven by factors such as financial literacy initiatives and the accessibility of online brokerage platforms, contributes significantly to market growth. Furthermore, institutional investors, including pension funds and endowments, continue to allocate substantial capital to mutual funds for diversification and long-term growth. The industry's diversification across fund types—equity, bond, hybrid, and money market— caters to a broad spectrum of risk tolerances and investment objectives. Geographic distribution, while concentrated in the United States, shows potential for expansion in Canada and Mexico, reflecting the increasing economic activity and financial sophistication in these regions. The competitive landscape is dominated by major players such as Vanguard, Fidelity, and BlackRock, who leverage their scale, brand recognition, and technological innovation to attract and retain clients. However, niche players and innovative fintech companies are also emerging, challenging the established order and potentially disrupting the market through specialized offerings and enhanced digital user experiences. Regulatory changes and evolving investor preferences, particularly concerning ESG (environmental, social, and governance) investing, are also shaping the industry's trajectory. The continued growth of the North American mutual fund industry is contingent upon several factors. Maintaining investor confidence amid market volatility is paramount. The industry's ability to adapt to technological advancements, including the integration of artificial intelligence and robo-advisors, will significantly influence its competitive edge. Furthermore, ongoing regulatory scrutiny and the need to transparently address concerns about fees and performance will play a crucial role in shaping investor perception and driving future growth. The industry's response to evolving investor demands, such as the increasing demand for ESG-focused funds and personalized investment solutions, will also determine its overall success in the long term. The continued expansion into new markets within North America, particularly by leveraging digital channels to reach a wider investor base, presents a significant opportunity for future growth. Recent developments include: In 2021, Fidelity Investements along with Visa backed Jumo, an emerging fintech startup which offers savings and credit products to entrepreneurs in emerging markets, as well as financial services infrastructure to partners such as eMoney operators, mobile fintech platforms and banks. it raised atotal of USD 120 million., In Dec 2021, T. Rowe Price Group, Inc. announced its acquisition of Oak Hill Advisors, L.P. (OHA), a leading alternative credit manager. The acquisition accelerates T. Rowe Price's expansion into alternative credit markets, complementing its existing global platform and ongoing strategic investments in its core investments and distribution capabilities.. Notable trends are: Market Securities Held By Mutual Funds in United States.

The US mutual fund industry experienced steady growth between 2019 and 2022, with a market size of $34.35 million in 2022. This growth was mainly driven by positive economic conditions, rising investor confidence, and the increasing popularity of mutual funds as a convenient and cost-effective investment tool. However, since 2022, the industry has faced headwinds due to market volatility, interest rate fluctuations, and geopolitical uncertainties, leading to a slowdown in growth. The mutual fund industry in the United States is highly fragmented, with numerous players offering a diverse range of products. The top five fund management companies, namely BlackRock, The Vanguard Group, State Street Global Advisors, Fidelity Investments, and J.P. Morgan Asset Management, collectively account for a significant market share. The industry is expected to witness continued consolidation in the future, as smaller players struggle to compete with larger firms that have economies of scale and extensive distribution networks. Recent developments include: November 2022: Asset manager BlackRock acquired US battery energy storage developer Jupiter Power from EnCap Investments., September 2022: BlackRock Real Assets acquired SolarZero, a leading solar and smart battery sector player based in New Zealand.. Notable trends are: US Mutual Funds Market Scenario.

United States Mutual Funds: ICI: Net Cash Flow: US: Money Market Funds data was reported at 18.085 USD bn in Oct 2018. This records an increase from the previous number of -6.609 USD bn for Sep 2018. United States Mutual Funds: ICI: Net Cash Flow: US: Money Market Funds data is updated monthly, averaging -1.408 USD bn from Jan 1998 (Median) to Oct 2018, with 250 observations. The data reached an all-time high of 160.423 USD bn in Jan 2008 and a record low of -155.787 USD bn in Mar 2010. United States Mutual Funds: ICI: Net Cash Flow: US: Money Market Funds data remains active status in CEIC and is reported by Investment Company Institute. The data is categorized under Global Database’s United States – Table US.Z028: Mutual Funds: Net Cash Flow.

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