why passive investing

  • 2017 - Humans Down Under Face Final Showdown with Passive-Fund Invaders - One of the world's last havens for fund managers is under seige.
  • 2017 - Chinese investors pick passive investing for long-term gains - Retail investors are increasingly choosing passive investing, preferring options like index funds that track global equity indexes over individual stocks, for yields from long-term growth of a market or a sector.
  • 2017 - Bad times for active managers: Almost none have beaten the market over the past 15 years - Active funds stumbled through another brutal year, with barely 1 in 3 large-cap managers able to beat the S&P 500
  • 2017 - Fund managers rarely outperform the market for long - Clients have been buying index funds, which passively track a benchmark like the S&P 500 index, and shunning fund managers who actively try to pick the best shares.
  • 2017 - Active fund fees remained high over past decade - Fees for actively managed equity funds globally have remained “remarkably resilient” over the past decade in spite of rising competition from low-cost index trackers.
  • 2017 - Active fund managers can add value but price is still too high - Indexing creates the potential for distortions and misallocated capital; it makes for weaker price discovery.
  • 2017 - Active managers tripped up as just 19% beat benchmark - US growth funds had worst performance last year but value funds fared better.
  • 2017 - Jack Bogle: ETFs have beaten hedge funds - Founder of Vanguard says investors are tired of paying high fees for poor performance.
  • 2017 - Keep calm and stay invested - In times of volatility, this shows how investors should “keep calm and stick to the plan”, says Rory McPherson, head of investment strategy at Psigma Investment Management.
  • 2017 - Warren Buffett is all set to win a $1 million bet with this hedge fund - According to Buffett, the five funds-of-funds gained 2.2 percent on an compounded annual basis in the nine years through 2016.
  • 2017 - Buffett Assails Money-Manager Fees as Berkshire Reports Profit Rise - Billionaire also declares victory in his $1 million bet with another asset manager that low-cost index funds would out earn hedge funds over a decade.
  • 2017 - Passive funds grew 4.5 times faster than active in 2016 - Investors concerned over high fees and disappointing performance vote with their feet.
  • 2017 - Warren Buffett says money managers charge too much - Buffett inspired a generation of financial pros to believe beating the market was possible, but lately he’s been lecturing about how money managers and investment consultants aren’t, on the whole, worth their fees.
  • 2017 - T. Rowe Price Shows New Way Active Managers Are Losing Ground
  • 2017 - The end of active investing? - Since index funds deliver the market rate of return through a widely diversified portfolio with no more than the market level of risk, the only justification for actively managed funds must be either more returns or less risk or both — increasingly recognised as the investment world’s version of the triumph of hope over experience.
  • 2016 - Actively-managed funds shown to underperform - An in-depth study by S&P Dow Jones Indices found that 86pc of actively-managed equity funds in Europe failed to beat the benchmark index over the last 10 years.
  • 2016 - Reasons To Avoid Actively Managed Funds - underperformance, fees, taxes, style and asset class creep and conflict of interest
  • 2016 - Actively managed funds underperform, data from S&P Dow Jones Indices shows
  • 2016 - Don’t Expect to Win With Actively Managed Funds - Trying to pick individual stocks is a losing game, and this doesn’t just apply to individual investors. It’s also true for professionally run, actively managed mutual funds.
  • 2010 - Why mutual funds "underperform"
  • 2015 - Active Mutual Fund Managers Can’t Keep Up - Actively managed mutual funds have been getting pummeled over the past few months, adding to the investment case for passively managed index-based investments and exchange traded funds as a better way to track the markets.
  • 2016 - Nearly three out of four active fund managers in UK underperform over past decade - and US, global and emerging markets are the worst sectors - Some 73 per cent of active funds in the UK and 86 per cent in the eurozone failed to post higher returns than their benchmarks over a decade-long investing period to the end of 2015, according to data from of 25,000 funds compiled by S&P Dow Jones Indices.
  • 2015 - The Drawbacks with Active Equity Management - Most active managers underperform their stated benchmarks. We cannot rely on past performance to identify outperforming managers beforehand. To gain any advantage with active management (if even possible) requires extraordinary patience
  • 2011 - Rising rates: A case for active bond investing - 85% of actively managed bond funds do not beat their benchmarks
  • 2013 - Don't Bet on Luck, Active Management Underperforms - The latest data for active funds returns does not bode well for traditional active fund managers. Standard & Poor’s (S&P) SPIVA report for 2015 is the clearest indictment yet for traditional active management, revealing that close to 90% of fund managers have underperformed over 10 years after fees.
  • 2016 - Active managers exposed as most US equity funds lag behind market - Nine out of ten US equity funds failed to beat the market over the past year, according to a new study that undermines active managers’ claims that they can outperform in more volatile markets.
  • 2016 - 86% of active equity funds underperform - Overall in Europe, four out of five active equity funds failed to beat their benchmark over the past five years, rising to 86 per cent over the past decade, according to S&P’s analysis of the performance after fees of 25,000 active funds.
  • 2016 - 99% of actively managed US equity funds underperform - Overall in Europe, four out of five active equity funds failed to beat their benchmark over the past five years, rising to almost 9 out of 10 over the past decade, according to S&P’s analysis of the performance after fees of 25,000 active funds.
  • 2016 - The laziest investing argument in the world gets blown up - One of the hottest and laziest ideas in the investing world right now is that more money flowing into passive-investment strategies will ruin the market.
  • 2016 - Passive investing, a winner in 2016, shows no sign of stopping - 2016 was the year of the passive investor—again.