Search Results for: passive

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

Passive Equity Fund Assets vs. Active Record passive inflows suggest passive equity funds will surpass active by 2022. Image: BofA Merrill Lynch

The Growth of Passive Investing in the U.S. and Europe Passive ownership represents 16.2% in the U.S. compared to 7.2% in Europe. Image: Goldman Sachs Global Investment Research

U.S. Active vs. Passive Fund Net Flows Active mutual funds exhibits persistent outflows, while inflows into index-tracking U.S. mutual funds and ETFs continue to rise. Image: Bloomberg

The Rise of Passive Investing Net inflows into index-tracking U.S. mutual funds and ETFs rose by around 50% in the second quarter from a year earlier. Image: The Wall Street Journal

Cumulative Net Flows into Passive and Active Equity Funds since 2005 Here is the cumulative net flows into passive and active equity funds from 2005 to 2019. Passive is indexes & ETFs. Until active equity funds drop fees, it will certainly continue.

Active Equity Managers Still Underperform This chart shows the low percentage of active funds that outperformed and how difficult it really is to beat the market over time. You may also like “The Rise of Passive Investing.” Image: PIMCO

Estimated Number of Hedge Funds Launched or Closed since 2008 Can hedge funds deliver higher returns than passive investing? Not really. But many investors still think they can achieve higher returns with active trading than with passive investing. The chart below shows that it is really hard to outperform the market. As Warren Buffett said,…

50 Percent of US Stock Fund Assets Are Invested in Index Funds Until active equity funds drop fees, the flow into passive equity funds will certainly continue. But could markets become inefficient if everyone buys index funds? Image: Morningstar

Ellis: Index Revolution Charles D. Ellis is a great American investment consultant, known for his philosophy of passive investing. Through this discussion with Consuelo Mack and his book Winning the Loser’s Game, he explains why passive index funds are the best choice for most investors. https://www.youtube.com/watch?v=fUpoK2ZOFWc