Vanguard experienced a rut of new cash flow in 2022, with net investor inflows down 49.6%.
According to a report by the Financial Times the asset manager's inflows dropped to $151bn for the calendar year, down from $299.4bn.
The second biggest asset manager in the world, Vanguard is widely known for his passive portfolio offerings.
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According to the report, more than half of the firm's total assets are invested in tracker funds, which follow indices such as the FTSE 100, MSCI ACWI or S&P 500.
The widespread downturn in equity markets last year hurt much of the passive and actively managed portfolios, as they were also hit with simultaneous losses in bond markets.
For example, the latter indices struggled in 2022, down 9.3% and 16%, respectively, according to FE fundinfo.
Vanguard specifically saw its total assets under management fall by $1.2trn in 2022, ending the year at $7.2trn AUM.
The firm recognised the tough market environment, describing 2022 as a "challenging year" to the FT.
