the vast majority of funds under management are still active
Is this true? A quick search suggests not:
With actively managed U.S. stock funds posting outflows in 11 out of the last 12 years, and an unbroken streak of inflows for passively managed U.S. stock funds, assets in index-tracking strategies have caught up with those in active funds.
Our latest U.S. fund flows report shows that at the end of April [2019], both passive and active U.S. equity funds had a total of about $4.3 trillion in assets, essentially reaching asset parity.
Huh, I got that from a recent Bloomberg article which says 15:1...not sure who’s right or why the numbers are so different.
Active management in the equity market, both in the U.S. and abroad, is dominant. And not by a little: Active management in the U.S. trounces passive by a ratio of 8-to-1 in dollar investments. Expand that to include the entire world, and the ratio is closer to 15-to-1. If we include fixed income in our calculations, the ratio balloons to 60-to-1.
Is this true? A quick search suggests not:
https://www.morningstar.com/insights/2019/06/12/asset-parity
Huh, I got that from a recent Bloomberg article which says 15:1...not sure who’s right or why the numbers are so different.