Vanguard Total Stock Market Index overtook Pimco Total Return as the world's largest mutual fund by assets. This is according to data provided by Morningstar.
Vanguard is a product that keeps track of the overall US equity market. As of the end of October, its assets had a total value of USD288 billion. Pimco's USD248 billion fund, which is managed by bond king Bill Gross, lagged far behind Vanguard's total assets.
Pimco was previously known for its status as the world's biggest mutual fund. It had its sixth consecutive monthly outflow in October, reaching a total of USD33.2 billion this year alone.
The Morningstar data showed that Pimco lost 1.29% in the past year. This is significantly higher compared to its average loss of 0.71%. Since investors have been more enthusiastic over stocks, the demand for fixed income investments has gone down over the previous year.
Pimco has not yet released an official comment regarding this matter.
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