“About 80% of actively managed mutual funds underperform the market in a typical year. Investors who stick with them pay much more than they have to,” according to a separate Bloomberg report. “Just one reason why traders and financial heavies deride oblivious retail investors as the ‘dumb money.'”
ETFs gathered $3.2 billion in net flows in April, taking the year-to-date total to $55.1 billion, according to data from the ETF Industry Association.
More than 80% of active fund managers lagged their relevant index in 2011, according to Standard & Poor’s. [Active Fund Managers Trailed Benchmarks Badly in 2011]
Investors are paying too much in mutual fund fees “when ETFs and index funds are knifing at one another to drive expenses well below 0.2% percent, and even 0.1%,” according to the Bloomberg story. [ETFs vs. Active Managers]