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Passive Inflows, Active Outflows Trend Continues In Q2

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Rupert Hargreaves
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As the active versus passive debate continues to drag on, analysts are increasingly looking at the effect the rise of passive investing is having on the market’s structure and the efficiency of capital markets.

It is impossible to deny that passive investing and products that follow a passive strategy have been the greatest success story in the financial world since the financial crisis. According to research from Bank of America, since December 2008 passive funds will have attracted a cumulative $1.6 trillion in funds by early next year compared to active funds, which have seen cumulative outflows of around $400 billion between the end of 2008 and the second quarter of 2016.

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Sign up now and get our in-depth FREE e-books on famous investors like Klarman, Dalio, Schloss, Munger Rupert is a committed value investor and regularly writes and invests following the principles set out by Benjamin Graham. He is the editor and co-owner of Hidden Value Stocks, a quarterly investment newsletter aimed at institutional investors. Rupert owns shares in Berkshire Hathaway. Rupert holds qualifications from the Chartered Institute For Securities & Investment and the CFA Society of the UK. Rupert covers everything value investing for Hedge Fund Alpha