Fee-based advisory programs emerge as the leading engagement model in retail wealth management
A new report from Cerulli Associates explores regular and ongoing coverage of mutual funds and ETFs through the lens of retail third-party distribution in the United States. Access the full report here.
December 2, 2024, BOSTON—This issue of The Cerulli Edge—U.S. Monthly Product Trends analyzes mutual fund and exchange-traded fund (ETF) product trends as of October 2024 and explores how fee-based advisory programs have become the dominant retail wealth management engagement model.
Highlights from this research:
- Mutual fund assets dropped 1.8% to $20.2 trillion in October, shedding 0.2% due to net outflows from active funds. The $41.4 billion in net outflows during the month were in line with the monthly flows trend observed since June.
- ETF assets decreased 0.4% to $9.9 trillion despite inflows of $123 billion during October, making the month the all-time second-best for net flows and the best in 2024. Passive ETFs had their best month ever, surpassing $800 billion in assets and $30 billion in net flows—each for the first time.
- Over the last decade, fee-based advisory programs have become the dominant retail wealth management engagement model. The ability of these programs to manage portfolios at scale allows advisors to broaden the breadth of the financial planning process they offer clients. Cerulli projects increasing reliance on managed accounts within the wealth management industry for the foreseeable future.
About Cerulli Associates
For over 30 years, Cerulli has provided global asset and wealth management firms with unmatched, actionable insights.
Headquartered in Boston, Cerulli Associates is an international research and consulting firm that provides financial institutions with guidance in strategic positioning and new business development. Our analysts blend industry knowledge, original research, and data analysis to bring perspective to current market conditions and forecasts for future developments.
