Open-End Investment Funds in the US - Market Research Report (2014-2029)
New York, United States
Last Updated: August 2024
NAICS 52591Revenue
$176.7bn
Past 5-Year Growth
Profit
$XX.Xbn
Employees
150k
Businesses
873
Wages
$XX.Xbn
Open-End Investment Funds in the US industry analysis
Revenue for the Open-End Investment Funds industry has been increasing over the five years to 2024. Open-end investment funds revenue has been growing at a CAGR of 0.6% to $176.7 billion over the past five years, including an expected decline of 0.4% in 2024 alone. In the same year, profit is set to fall to 29.4%. Industry revenue has been increasing alongside overall asset growth, despite operators being forced to lower fees to meet shifting consumer preferences.
Trends and Insights
- The greatest shift for the industry has been an evolving investor preference for exchange-traded funds (ETFs). While mutual funds account for the majority of industry assets, growth in ETF assets has significantly outpaced that of mutual funds.
- Households increased as a share of industry assets due to declines in institutional investment and an expansion in downstream distribution channels. These distribution channels include employer-sponsored retirement plans, financial advisers, wealth managers and independent investment advisers that have channeled more household capital into investment companies.
- The Mid-Atlantic is one of three major operating regions for the Open-End Investment Funds industry. The large percentage of establishments in this region can be attributed to the high concentration of operators in New York and Delaware.
- The Open-End Investment Funds industry operates with a low level of market share concentration. The liquid nature of investor capital and diverse financial planning goals among investors have led many new operators to enter into the market.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has grown at a CAGR of 0.6 % over the past five years, to reach an estimated $176.7bn in 2024.
Trends and Insights
Passive investing increases in popularity
- Investors choose open-end investment funds for their exposure to various assets and relatively hands-off approach. Inexperienced investors don't need to study a specific company and their stock, they can just invest in a fund that follows the entire stock market.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
ETF dominance to grow moving forward
- Investors will favor the lower costs and liquidity associated with ETFs. ETFs are expected to grow in popularity over the next five years.
Biggest companies in the Open-End Investment Funds in the US
| Company | Market Share (%)
2024 | Revenue ($m)
2024 | Profit ($m)
2024 | Profit Margin (%)
2024 |
|---|---|---|---|---|
Fidelity Investments Inc. | 21,000.0 | 7,329.0 | 34.9 | |
Vanguard Group Inc. | 8,000.0 | 2,792.0 | 34.9 | |
Capital Group Companies Inc. | 7,760.0 | 2,708.2 | 34.9 |
To view the market share and analysis for all 3 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Money market funds, Equity funds and Hybrid funds. Money market funds is the largest segment of the Open-End Investment Funds in the US.
Trends and Insights
Mutual funds are the main type of product in this industry
- Mutual funds are legal entities that pool investor capital and invest it in stocks, bonds, money-market instruments, other securities or cash.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Portfolio Management in the US
- Private Equity, Hedge Funds & Investment Vehicles in the US
Complementors
- Retirement & Pension Plans in the US
- Trusts & Estates in the US
International industries
- Funds Management Services in Australia
- Funds Management and Other Investment Services in New Zealand
- Open-Ended Investment Company Activities in the UK
Table of Contents
About this industry
Industry definition
This industry comprises legal entities (funds) that earn fees by pooling and investing money, giving the investors rights to a proportional share of the fund performance. Ownership shares of these funds are sold to the public in initial public offerings, with additional shares offered continuously. Investors redeem the shares at prices that the fund’s net asset value or market value determines. This report focuses on mutual funds and exchange-traded funds.
What's included in this industry?
Sponsoring and offering equity fundsSponsoring and offering bond fundsSponsoring and offering money market fundsSponsoring and offering exchange-traded fundsSponsoring and offering hybrid fundsCompanies
Fidelity Investments Inc.Vanguard Group Inc.Capital Group Companies Inc.Purchase this report to view all 3 major companies in this industry.
Related Terms
TARGET DATE FUNDEXCHANGE-TRADED FUNDSLIQUIDITYINDIVIDUAL RETIREMENT ACCOUNTIndustry Code
NAICS 52591 - Open-End Investment Funds in the US
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
The greatest shift for the industry has been an evolving investor preference for exchange-traded funds (ETFs). While mutual funds account for the majority of industry assets,...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Households increased as a share of industry assets due to declines in institutional investment and an expansion in downstream distribution channels. These distribution channe...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2024
- Product innovation level
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
The Mid-Atlantic is one of three major operating regions for the Open-End Investment Funds industry. The large percentage of establishments in this region can be attributed t...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each state
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each state in 2024
- Number and share of revenue each state accounts for in 2024
- Number and share of wages each state accounts for in 2024
- Number and share of employees in each state in 2024
Detailed analysis
- Geographic spread of the industry across North America, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
The Open-End Investment Funds industry operates with a low level of market share concentration. The liquid nature of investor capital and diverse financial planning goals amo...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
Major companies adapted to higher interest rates and less liquidity. After nearly 15 years of quantities easing, the Federal Reserve is reducing its balance sheet to help con...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
- Overview of Fidelity Investments Inc.'s performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Vanguard Group Inc.'s performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Capital Group Companies Inc.'s performance by revenue, market share and profit margin from 2018 through 2024
Detailed analysis
- Description and key data for Fidelity Investments Inc., and factors influencing its performance in the industry
- Description and key data for Vanguard Group Inc., and factors influencing its performance in the industry
- Description and key data for Capital Group Companies Inc., and factors influencing its performance in the industry
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Funds spend a substantial amount of capital on the establishment and maintenance of investor centers, which serve as important distribution channels for mutual funds. Technol...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
The industry is highly profitable, and has continued to attract new entrants to the market. As more operators enter the market, increased competition will threaten overall in...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Industry Multiples (2017-2022)
- Industry Tax Structure (2017-2022)
- Income Statement (2017-2022)
- Balance Sheet (2017-2022)
- Liquidity Ratios (2017-2022)
- Coverage Ratios (2017-2022)
- Leverage Ratios (2017-2022)
- Operating Ratios (2017-2022)
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in the US include:
- US Census Bureau
- US Bureau of Labor Statistics
- US International Trade Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Open-End Investment Funds in the US industry in United States in 2024?
The market size of the Open-End Investment Funds in the US industry in United States is $176.7bn in 2024.
How many businesses are there in the Open-End Investment Funds in the US industry in 2024?
There are 873 businesses in the Open-End Investment Funds in the US industry in United States, which has grown at a CAGR of 1.2 % between 2019 and 2024.
Has the Open-End Investment Funds in the US industry in United States grown or declined over the past 5 years?
The market size of the Open-End Investment Funds in the US industry in United States has been growing at a CAGR of 0.6 % between 2019 and 2024.
What is the forecast growth of the Open-End Investment Funds in the US industry in United States over the next 5 years?
Over the next five years, the Open-End Investment Funds in the US industry in United States is expected to grow.
What are the biggest companies in the Open-End Investment Funds in the US market in United States?
The biggest companies operating in the Open-End Investment Funds market in United States are Fidelity Investments Inc., Vanguard Group Inc. and Capital Group Companies Inc.
What does the Open-End Investment Funds in the US in United States include?
Sponsoring and offering equity funds and Sponsoring and offering bond funds are part of the Open-End Investment Funds in the US industry.
Which companies have the highest market share in the Open-End Investment Funds in the US in United States?
The company holding the most market share in United States is Fidelity Investments Inc..
How competitive is the Open-End Investment Funds in the US industry in United States?
The level of competition is high and increasing in the Open-End Investment Funds in the US industry in United States.
