For example, Orange County Employees Retirement System, a $14 billion California-based public pension scheme, recently announced it would cut allocations to active equity managers to save on costs.

Buckland has pointed out that active managers charging high fees and earned mediocre returns were being “brought down to earth” by low-cost passive funds.

“Forty per cent profit margins are hard to defend in an industry where barriers to entry are low and there are low-cost disrupters on the prowl,” Buckland said.

Due to the ongoing shift in investment sentiment, actively managed equity funds experienced net global outflows of about $523 billion over the past year, whereas passive equity funds attracted $434 billion in inflows.

For more information on the ETF industry, visit our ETF performance reports category.