FYI: The battle is over: Passive investing is victorious. Active management has been defeated.
By now, you surely know that Wall Street quakes at the mere mention of indexers, who devour all in front of them. Active managers, many of whom have since moved on to careers as Wal-Mart greeters or dental hygienists, are becoming as rare as the northern white rhinoceros. Once derided as “Bogle’s folly” – indexing’s inventor was Vanguard Group founder Jack Bogle – passive investing is now an unstoppable force, taking over everyone and everything in sight.
There is but one small problem with all of the above: It's wrong. All of the technically accurate but misleading headlines fail to paint a complete picture. The hype about passive taking over the investing world is just that – hype.
Active management in the equity market, both in the U.S. and abroad, is dominant. And not by a little: Active management in the U.S. trounces passive by a ratio of 8-to-1 in dollar investments. 1 Expand that to include the entire world, and the ratio is closer to 15-to-1. If we include fixed income in our calculations, the ratio balloons to 60-to-
Regards,
Ted
https://www.bloomberg.com/opinion/articles/2019-10-01/passive-investing-vs-active-investing-which-is-bigger
