% of Large Cap Active Funds Outperforming Russell 1000 Benchmarks in May Best May in history for actively managed large-cap funds. But can active large-cap funds outperform benchmark over a full market cycle? Image: BofA US Equity & Quant Strategy
Performance – % of Active Funds Lagging Behind S&P 1500 It seems really hard to beat the market for active managers. Image: Financial Times
Performance – % of Large-Cap Active Funds that Outperformed their Russell 1000 Benchmarks in January January was a tough month for large-cap active funds. Image: BofA Global Investment Strategy
Percentage of Active Funds Beating the Benchmark The chart shows how difficult it is for most active funds to beat the benchmark over time. Image: BofA US Equity and Quant Strategy
U.S. Active Fund Managers vs. Benchmarks It is hard for active fund managers to beat their benchmarks over the long term. Image: Financial Times
Passive Over Active Funds History suggests that investor outflows from active funds are smallest after periods of high policy uncertainty. Image: Goldman Sachs Global Investment Research
Share of U.S. Equity Mutual Fund and ETF AUM Passive U.S. equity funds surpassed active ones in 2020. Investors prefer them due to their lower fees, potential tax benefits, and the belief that active fund managers cannot consistently outperform the market. Image: Goldman Sachs Global Investment Research
Active vs. Passive Fund Flows The trend of investors shifting from active to passive funds has accelerated significantly over the past decade, driven by cost considerations, performance outcomes, and evolving market practices. Image: Goldman Sachs Global Investment Research
Active Global Equity Fund Flows and % MSCI ACWI Members Trading Above 200-DMA Flows to active global equity funds correlate strongly with stock price dispersion. Higher dispersion creates more opportunities for active managers, especially in volatile markets, boosting investor interest and inflows. Image: BofA Global Investment Strategy
U.S. Domiciled Funds: Active vs. Passive as a % of Assets Under Management Passive accounts for 54% of all U.S. domiciled fund assets, highlighting the significant growth and popularity of passive investing strategies in recent years. Image: BofA US Equity & Quant Strategy
Flows by Year into Active vs. Passive Funds Passive funds are growing in popularity as investors prioritize lower fees, potential tax advantages, and doubt active fund managers’ ability to consistently outperform the market. As a result, active funds are facing capital outflows. Image: BofA US Equity & Quant Strategy