Is passive investing in decline?

The latest insights into the debate of active vs passive investing

For some people, active investing is dead; passive won the day. But the data isn’t so conclusive, others argue, pointing out that active investing still offers plenty of value through careful and innovative management. Explore the latest analysis on the ongoing debate between passive and active investing via the thought leadership below.

Beyond Active and Passive Investing (CFA Institute Research & Policy Center)

The adoption of passive investing in the past half-century has had a vast impact on the investment management landscape. Are things changing now?

ELTIF 2.0: Investing in Private Credit through Open-Ended Funds (BNP Paribas AM)

Open-ended funds offer a way to access private credit opportunities. However, investors need to be selective in order to avoid risks and generate alpha.

Active vs Passive Funds by Investment Category (Morningstar)

Are active mutual funds and ETFs worth the premium in fees? This article tries to answer this critical question.

Active Fixed Income: Pursuing Consistent Through-Cycle Alpha (MFS)

For compliance reasons, this paper is only accessible in certain geographies

MFS Co-CIO of Fixed Income, Alexander Mackey, discusses the importance of an active approach to finding the right opportunities in the fixed income universe.

Active Advantages in 2024 (Natixis IM)

For compliance reasons, this paper is NOT accessible in the United States and Canada

Finding the right active manager is never easy but in the current market environment, it is becoming essential.

Active vs. Passive Investing: Revisiting the Debate (MS IM)

For many investors, opting to invest in an index has been an easy decision over the last few years. However, times may be changing.

The History of Active Management in U.S. Securities (Museum of American Finance)

Sound mathematical principles and a preponderance of evidence reveals that actively managed funds outlived their utility long ago.

Public Pension Returns vs Index Investing? (Center for Retirement Research)

For compliance reasons, this paper is only accessible in the United States

Some recent studies have argued that public pensions could get higher after-fee returns by investing only in passive index funds.

Passive Investing and the Rise of Mega-Firms

The growth of passive investing has stimulated academic and policy interest in how it affects asset prices and the real economy.

The Negative Impact of Crowding on Active Fund Performance (Alpha Architect)

Crowding not only results in diminishing performance relative to passive index funds, but also leads to significant underperformance.

Active Management the Bogle Way: Enhanced Indexing’s Renaissance (Intech)

For compliance reasons, this paper is only accessible in certain geographies

Investors today face higher concentration in equity indexes, reducing diversification in their passive allocation and increasing risk exposure.