Tim Strauts: In today's chart, we are going to examine fund-flow trends in the U.S. equity space by looking at rolling 12-month flows into active and passive funds.
In the 1990s, investors consistently put more money into active funds than passive funds. That behavior changed around 2005 as more money started to flow to passive options. This date coincides with the growth of ETFs. Since then, passive flows have accelerated while active flows have tumbled to all-time lows.