End of Era: Passive Equity Funds Surpass Active in Epic Shift
- Stock pickers overtaken as investors run toward index funds
- The balance of power has changed in the stock-fund industry
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It’s official: inexpensive index funds and ETFs have finally eclipsed old-fashioned stock pickers.
Passive investing styles have been gaining ground on actively managed funds for decades. But in August the investment industry reached one of the biggest milestones in its modern history, as assets in U.S. index-based equity mutual funds and ETFs topped those in active stock funds for the first time.