Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.
Despite the S&P 500 gaining 31.5% in 2019, active U.S. equity funds experienced a sixth year of net outflows during the decade-long bull market, a new report notes.
Nasty environment for many active managers. Recent experience with some formerly good fund houses leads me to think their products have suffered as money has fled their firms. Might be a vicious cycle.
Vanguard, the largest passive-fund manager with $3.8 trillion in assets, is likely to become the largest active manager as well within a few years. Currently Vanguard boasts $1.37 trillion in active mutual fund assets, well ahead of Fidelity and only $179 billion behind American Funds, thanks to a higher growth rate on strong inflows at a time when most such funds are seeing outflows.
and
“We think it’s more appropriate to compare ‘high cost vs. low cost’ funds, instead of active vs. passive.”
Comments
Somehow T. Rowe has managed to buck the trend.
T. Rowe Price overcomes 'choppy market environment' to beat Wall Street estimates https://www.bizjournals.com/baltimore/news/2019/10/24/t-rowe-price-overcomes-choppy-market-environment.html
T. Rowe Price has a $1 trillion answer to claims stock-picking is dead (possibly a year old, but still good read) https://www.investmentnews.com/t-rowe-price-stock-picking-franklin-resources-legg-maso-175759
https://www.inquirer.com/business/vanguard-jack-bogle-passive-active-mutual-fund-etf-20190527.html
(FWIW, I hold actively managed funds in both houses.)