- From 2021 through August 2024, there have been 87 mutual fund-to-ETF conversions. These converted funds now hold a combined AUM of $122.4 billion, with YTD net inflows of approximately $9.6 billion. They currently represent 15.6% of the total active ETF market.
- Dimensional remains the leading converted ETF firm, managing $86.5 billion in assets with YTD net inflows of $6.3 billion. However, other firms are also making strides. For example, Fidelity has converted 12 funds through August 2024. Prior to conversion, these funds held $9.5 billion in AUM, which now stands at $13.2 billion, with $1.7 billion in net inflows post-conversion. JPMorgan has also witnessed increased momentum, with $845 million in net inflows YTD.
- Despite some firms’ success, the pace of conversions has slowed in 2024. With only 13 conversions YTD compared to 36 in 2023, many firms remain hesitant after seeing the challenges conversions initially faced. However, the uptick in inflows, especially excluding Dimensional, may encourage more firms to make the shift. Notably, BlackRock announced early in 2024 its intent to convert its $902.4 million International Dividend Fund and recently revealed plans to convert its $1.7 billion Municipal Bond Fund, signaling the entrance of a significant player into the market.
