Passive indexed fund options including ETFs continue to gather steam, whereas actively managed funds are bleeding assets as investors have little to show for the high manager fees.
According to Morningstar, about $144 billion flowed into passive funds over the past five years while actively managed funds lost over $460 billion, writes Gregory Leonberger, Director of Research, for Marquette Associates.
Since the equity markets have traded on macroeconomic factors over the past couple of years, Leonberger suggests that fundamentally-based managers have had a tough time in adding value. [ETF Performance Beats Active Management]
The bond bull market has also gathered more assets as investors tried to preserve their capital in light of the volatile markets and steered investors away from equities.