Vanguard brought in some $21.3bn (£13.6bn) inflows in November into its index tracker funds.
The FT reports the inflow was the passive firm’s third-best monthly result in its history and has brought $185bn into its mutual funds in 2014.
The total includes $63bn into exchange traded funds and was mostly driven by financial advisers.
Morningstar analyst Michael Rawson told the FT: “The power of Vanguard is driven by the trend towards low-cost funds — we know that — and by the trend towards passive funds — we know that — but the company has also opened up a whole new distribution wing.”
Vanguard overtook Pimco last month as the second largest fund manager in the world behind BlackRock and now has total assets in excess of $3trn.
Six of Vanguard’s best monthly inflow totals have come in 2014. Its best monthly inflow total came in January 2013 when it brought in $24.5bn.
Chief executive Bill McNabb says: “Having well performing markets always sets the table for asset managers, so that has been a tailwind.
“But the marketplace is coming around to the idea that cost actually matters, in indexing or even in the active world, and that has put a lot of attention on us because we were the first to make that point and we are going to continue making it vocally.”