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Passively managed US mutual funds and ETFs have, for the first time, amassed more money than their actively managed counterparts. Investors have poured a net $2.5t into passive ETFs from 2019 to 2023, far more than the nearly $400b absorbed by passive mutual funds.
"A decade ago passive funds held about a quarter of the US mutual fund and ETF market, according to Cerulli Associates, a financial research firm. Despite occasional periods of outperformance, active managers have largely fallen short of passive counterparts in recent years. Active assets remain about 70% of the market when alternative investments such as private equity and private credit are taken into account, said Matt Apkarian, associate director of product development at Cerulli."
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