The largest discrepancy between in active and passive funds was in U.S. stocks. Net sales in active equity funds was negative $15 billion, whereas passive funds saw a positive $64 billion in sales.
Active funds, though, outsold their passive competitors by a 3-to-1 margin over the past 12 months, excluding ETF sales. However, active international stock funds will have to generate better performances if they want to maintain their lead. For instance, the Vanguard Total International Stock Index (VTIAX), the mutual fund version of the Vanguard Total International Stock ETF (NYSEArca: VXUS), has outperformed the average foreign large-blend fund by 0.70% per year. Additionally, the Vanguard Total Stock Market Index (VTSAX), the fund version of the Vanguard Total Stock Market ETF (NYSEArca: VTI), is 1.0% above its category average.
Top international funds tend to remain top of their class. However, passive fund options are quickly gaining, with the Vanguard Total International Stock Index among the top 20% of its group.
For more information on passive ETFs, visit our indexing category.
Max Chen contributed to this article.