Epic Fail: Passive S&P 500 ETFs Crushing Actively Managed ETFs

Of the five largest U.S.-focused equity ETFs by assets after the three major S&P 500 ETFs, four have topped the U.S. benchmark this year with the iShares Russell 2000 ETF (NYSEArca: IWM) being the laggard. [Cheap ETFs for Portfolio-Building]

In the 12-months ended Jun 30, passive funds have brought in 68% of asset inflows, with ETFs making up 35% and passive mutual funds 33%, while actively managed mutual funds brought in 32% of assets, writes John Rekenthaler, V.P. of research for Morningstar.

SPDR S&P 500 ETF

Tom Lydon’s clients own shares of IWM and SPY.