Passive Funds Slam Active by ‘Record Margin’ in December

Will active ever get it together?

Will active ever get it together?

A horrible month capped a horrible year for active management mutual fund flows (or the opposite, if you’re particular to the passive strategy side of the debate).

Research bigwig Morningstar reported that investors ended the year by “favoring passively managed U.S. equity funds over actively managed funds by an estimated $51 billion in passive funds in December.”

On the active side, investors pulled $23 billion out of equity funds during the same month.

Highlights (or lowlights, depending on one’s perspective) from Morningstar’s report about asset flows in December include:

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