FYI: A line between active and passive funds is set to cross next year.
When it comes to mutual funds and exchange-traded funds that buy U.S. stocks, those that passively track indexes now hold 48 percent of assets, according to estimates from Morningstar Inc. They’ll top 50 percent in 2019 if the current trend holds.
That would mark a tipping point for the investing industry, which for decades built its stature on the prowess of stock-and-bond pickers seeking to beat the markets. In recent years, investors have ditched those active managers in favor of ETFs and other index funds, which typically offer a way to get market exposure at far lower fees. The shift continued this year even as the benchmarks the passive funds follow wobbled and fell.
Regards,
Ted
https://www.bloomberg.com/news/articles/2018-12-31/shift-from-active-to-passive-approaches-tipping-point-in-2019
