FP11316_0.png
A shift away from traditional asset classes and into alternative products is resulting in billions of dollars in outflows from the industry's largest mutual funds.

Seven of the largest asset managers reported a record $50 billion in combined redemptions during the third quarter, mostly from active funds, according to Bloomberg News. As a result, Brad Morrow, the head of research for the Americas at Willis Towers Watson, suggests the industry is on the heels of massive consolidation.

"You're going to see niche players with competitive advantages … implement interesting strategies for portfolios, but I think who will be hit hardest are the more traditional managers that don't have the size, scale or operational efficiencies to maintain lower costs," Morrow explained. "It is going to be a tougher world for those."

Scroll through to see the 20 largest open-end funds ranked by their net share class flows over the last five years, as of Oct. 28. All data is from Morningstar.
FP11316_20.png

Vanguard Total Intl Stock Index Inv (VGTSX)

Estimated 5-Yr. Net Flows (millions): $46,949
5-Yr. Return: 1.24%
Expense Ratio: 0.19%
Net Assets (millions): $225,971
FP11316_19_edited-1.png

Vanguard Total Bond Market II Idx Inv (VTBIX)

Estimated 5-Yr. Net Flows (millions): $28,759
5-Yr. Return: 3.03%
Expense Ratio: 0.09%
Net Assets (millions): $109,049
FP11316_18.png

Metropolitan West Total Return Bd M (MWTRX)

Estimated 5-Yr. Net Flows (millions): $6,882
5-Yr. Return: 4.43%
Expense Ratio: 0.67%
Net Assets (millions): $81,411
FP11316_17_edited-1.png

Vanguard Institutional Index I (VINIX)

Estimated 5-Yr. Net Flows (millions): $4,467
5-Yr. Return: 12.54%
Expense Ratio: 0.04%
Net Assets (millions): $208,758
FP11316_16.png

American Funds American Balanced A (ABALX)

Estimated 5-Yr. Net Flows (millions): $3,855
5-Yr. Return: 9.83%
Expense Ratio: 0.58%
Net Assets (millions): $97,651
FP11316_15.png

Franklin Income A (FKINX)

Estimated 5-Yr. Net Flows (millions): -$1,630
5-Yr. Return: 5.09%
Expense Ratio: 0.61%
Net Assets (millions): $79,657
FP11316_14.png

American Funds Income Fund of Amer A (AMECX)

Estimated 5-Yr. Net Flows (millions): -$4,764
5-Yr. Return: 8.34%
Expense Ratio: 0.56%
Net Assets (millions): $99,420
FP11316_13.png

American Funds Capital Income Bldr A (CAIBX)

Estimated 5-Yr. Net Flows (millions): -$6,454
5-Yr. Return: 6.46%
Expense Ratio: 0.59%
Net Assets (millions): $99,575
FP11316_12.png

Vanguard Total Bond Market Index Inv (VBMFX)

Estimated 5-Yr. Net Flows (millions): -$7,456
5-Yr. Return: 3.02%
Expense Ratio: 0.16%
Net Assets (millions): $174,848
FP11316_11.png

American Funds Washington Mutual A (AWSHX)

Estimated 5-Yr. Net Flows (millions): -$12,743
5-Yr. Return: 12.02%
Expense Ratio: 0.58%
Net Assets (millions): $80,904
FP11316_10.png

American Funds Europacific Growth A (AEPGX)

Estimated 5-Yr. Net Flows (millions): -$14,947
5-Yr. Return: 3.63%
Expense Ratio: 0.83%
Net Assets (millions): $124,470
FP11316_9.png

Vanguard Total Stock Mkt Idx Inv (VTSMX)

Estimated 5-Yr. Net Flows (millions): -$16,544
5-Yr. Return: 12.03%
Expense Ratio: 0.16%
Net Assets (millions): $468,740
FP11316_8.png

American Funds Invmt Co of Amer A (AIVSX)

Estimated 5-Yr. Net Flows (millions): -$17,083
5-Yr. Return: 10.69%
Expense Ratio: 0.58%
Net Assets (millions): $76,849
FP11316_7.png

American Funds Capital World Growth & Income A (CWGIX)

Estimated 5-Yr. Net Flows (millions): -$17,442
5-Yr. Return: 6.95%
Expense Ratio: 0.77%
Net Assets (millions): $81,986
FP11316_6.png

Vanguard 500 Index Inv (VFINX)

Estimated 5-Yr. Net Flows (millions): -$19,097
5-Yr. Return: 12.40%
Expense Ratio: 0.16%
Net Assets (millions): $260.418
FP11316_5.png

Fidelity 500 Index Investor (FUSEX)

Estimated 5-Yr. Net Flows (millions): -$19,257
5-Yr. Return: 12.48%
Expense Ratio: 0.09%
Net Assets (millions): $102,856
FP11316_4.png

Vanguard Wellington Inv (VWELX)

Estimated 5-Yr. Net Flows (millions): -$19,420
5-Yr. Return: 8.98%
Expense Ratio: 0.26%
Net Assets (millions): $92,217
FP11316_3.png

Fidelity Contrafund (FCNTX)

Estimated 5-Yr. Net Flows (millions): -$21,812
5-Yr. Return: 12.68%
Expense Ratio: 0.71%
Net Assets (millions): $108,379
FP11316_2.png

American Funds Growth Fund of Amer A (AGTHX)

Estimated 5-Yr. Net Flows (millions): -$23,999
5-Yr. Return: 12.05%
Expense Ratio: 0.65%
Net Assets (millions): $143,470
FP11316_1_edited-1.png

PIMCO Total Return Instl (PTTRX)

Estimated 5-Yr. Net Flows (millions): -$107,226
5-Yr. Return: 3.52%
Expense Ratio: 0.46%
Net Assets (millions): $84,392
MORE FROM FINANCIAL PLANNING