Passive investing has been in the news lately because more and more investment funds are being placed in passive investments.
Assets managed by passive funds rose 18 percent last year, according to Morningstar. Assets managed by active funds increased just 4 percent in the same period.
Institutional investors such as large pension funds are also placing more of their money under management in passive strategies. Seventy-nine percent of institutions used active strategies in 2012, reports Greenwich Associates. But three years later, the figure had dropped to 67 percent.
These inflows and changes in investment trends are gradually making passive investing more dominant...
Login required to continue reading.
Setup a free account to get access to this article (no credit card required).
View Full Article
