West Loop Financial LLCLearn From the Fall of Active Management – West Loop Financial LLC https://www.westloopfinancial.com Evolutionize Site Wed, 19 Aug 2020 20:50:49 +0000 en-US hourly 1 https://wordpress.org/?v=5.1.22 Learn From the Fall of Active Management https://www.westloopfinancial.com/2014/09/08/learn-from-the-fall-of-active-management/ https://www.westloopfinancial.com/2014/09/08/learn-from-the-fall-of-active-management/#respond Mon, 08 Sep 2014 09:00:57 +0000 http://evolvemypractice.com/?p=1294 Proponents of evidence-based investing, myself included, doubted whether this day would ever come. Investors are now actually paying attention to the overwhelming data supporting evidence-based investing and are fleeing active management. Some of the recent developments reinforcing this growing trend are: Index funds are mainstream John Rekenthaler is the vice president of research for Morningstar....

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]]> Proponents of evidence-based investing, myself included, doubted whether this day would ever come. Investors are now actually paying attention to the overwhelming data supporting evidence-based investing and are fleeing active management. Some of the recent developments reinforcing this growing trend are:

Index funds are mainstream

John Rekenthaler is the vice president of research for Morningstar. Here’s the conclusion he reaches in an article titled “Do Active Funds Have a Future?”: “Passive investing is now the mainstream approach.”

Rekenthaler tallied net sales over the past 12 months for all exchange-traded funds, passive mutual funds and active funds. The results weren’t even close. Of the total sales, 68 percent were passive and only 32 percent were active. Rekenthaler believes active managers have “become the periphery.”

Read the rest of the article at The Huffington Post.

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