The Rise of Passive Investing – Index Funds and ETFs
The Rise of Passive Investing – Index Funds and ETFs Passive investments continue to grow. Index funds smash through the $10tn-in-assets mark. Image: Financial Times
The Rise of Passive Investing – Index Funds and ETFs Passive investments continue to grow. Index funds smash through the $10tn-in-assets mark. Image: Financial Times
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
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
Passive vs. Active Investing – Single Stocks vs. Equity ETFs More passive investing amid COVID, as BofA clients have bought ETFs almost 90% of the time over the last 50 weeks. Image: BofA Securities
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
Passive Equity and Bond Funds vs. Active Equity and Bond Funds The popularity of passive investing through ETFs and index mutual funds has grown significantly since 2010. Image: Financial Times
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,…
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