An ETF boutique kept the lead last month among the smallest fund firms, even as the group's inflows and marketshare fell.

Jerry Szilagyi Rational Advisors, Inc. President, Owner

This article draws from Morningstar Direct data on July 2021 open-end mutual fund and ETF flows, excluding money-market funds and funds of funds. (Other asset management products, like CITs and SMAs, are also not included.) More specifically, this article focuses on the 496 firms (up from 489 in June 2021 but down from 501 in July 2020) with less than $1 billion each in long-term fund AUM.

Micro fund firms had $95 billion in total long-term AUM as of July 31, 2021, accounting for 0.35 percent of overall industry long-term fund AUM. That compares with $96 billion and 0.36 percent on June 30, 2021, and $95 billion and 0.46 percent on July 31, 2020.

260 of those micro fund firms brought in net inflows last month, down from 273 in June 2021 but up from 222 in July 2020.

Rational Advisors' Strategy Shares kept the lead last month among micro fund firms, thanks to an estimated $136 billion in net July 2021 inflows, up month-over-month from $119 million in June 2021 and up year-over-year from $15 million in July 2020. Other big July 2021 inflows winners included: Rockefeller, $92 million (up M/M from $2 million in net outflows, up Y/Y from $6 million in net outflows); Impact Shares, $57 million (up M/M from $6 million, up Y/Y from $1 million); Holbrook Holdings, $48 million (down M/M from $53 million, up Y/Y from $1 million in net outflows); and LeaderShares, $47 million (up M/M from $31 million, up Y/Y from zero net flows).

Last month included four apparent newcomers: ATAC Fund, Faith Investor, iClima, and ZEGA.

Strategy Shares also led the micro fund firm inflows pack year-to-date as of July 31, 2021, thanks to an estimated $645 million in net inflows. Other big YTD inflows winners included: Horizon Kinetics, $591 million; and Sprucegrove Investment Management, $434 million.

The same three micro firms led the pack for the 12-month period ending July 31, 2021. Strategy Shares had $781 million in net inflows, Horizon Kinetics had $591 million, and Sprucegrove had $434 million.

On the flip side, last month was a rough one for Muzinich, which led the micro fund firm outflows pack thanks to an estimated $95 million in net July 2021 outflows, down M/M from $13 million in net June 2021 inflows and down Y/Y from $35 million in net July 2020 inflows. Other big July 2021 outflows sufferers included: Renaissance Capital, $62 million (down M/M from $26 million in net inflows, down Y/Y from $15 million in net inflows); Teucrium, $51 million (up M/M from $40 million, down Y/Y from $10 million in net inflows); Chickasaw Capital Management's MainGate, $51 million (up M/M from $23 million, up Y/Y from $31 million); and Chartwell Investment Partners, $32 million (down M/M from $1 million in net inflows, down Y/Y from $35 million).

Muzinich also led the micro fund firm outflows pack YTD, as of July 31, 2021, thanks to an estimated $389 million in net outflows. Other big YTD outflows sufferers included: Schroder, $335 million; and MainGate, $258 million.

Phaeacian led the micro fund firm outflows pack for the 12-month period ending July 31, 2021, thanks to an estimated $7.27 billion in net outflows. Other big outflows sufferers included: Muzinich, $368 million; and MainGate, $364 million.

As a group, micro fund firms brought in an estimated $729 million in net July 2021 inflows, equivalent to about 0.76 percent of their combined AUM and accounting for 0.95 percent of overall industry long-term inflows. That compares with $1.345 billion, 1.4 percent of AUM, and 1.27 percent of industry inflows in June 2021, and $828 million, 0.87 percent of AUM, and 2 percent of industry inflows in July 2020.

In the first seven months of 2021, micro firms brought in an estimated $7.113 billion in net inflows, equivalent to 7.45 percent of their combined AUM and accounting for 0.89 percent of industry inflows. And in the 12-month period ending July 31, 2021, micro firms brought in an estimated $7.27 billion in net inflows, equivalent to 7.61 percent of AUM and accounting for 0.66 percent of industry inflows.

Across the entire industry, the 774 fund firms (up from 768 in June 2021 and 757 in July 2020) tracked by the M* team brought in a combined $77.077 billion in estimated net long-term inflows in July 2021, equivalent to 0.27 percent of industry AUM of $26.898 trillion. That compares with $105.503 billion and $26.534 trillion in June 2021 and $41.339 billion and $20.737 trillion in AUM.

Active funds brought in an estimated $14.693 billion in net July 2021 inflows, down M/M from $24.578 billion but up Y/Y from $12.052 billion. Passive funds brought in an estimated $57.431 billion in July 2021 inflows, down M/M from $80.917 billion but up Y/Y from $29.381 billion.

In the first seven months of 2021, long-term funds brought in an estimated $801.234 billion in net inflows, equivalent to 2.98 percent of long-term fund AUM. And in the 12 months ending July 31, 2021, long-term funds brought in $1.095194 trillion in net inflows, equivalent to 4.07 percent of their AUM. 

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