WSJ today (preaching to the converted here).

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WSJ today (preaching to the converted here).

Post by rgs92 » Mon Oct 01, 2018 6:40 pm

Stock Pickers Fail to Match Index Funds.
Indexes Top Active Managers.
BY DAWN LIM (Page R1 in Markets Review and Outlook section.)

Start of article:

This year was supposed to be stock pickers’ big comeback. So far, it hasn’t been.

As the year started, the specter of interest-rate increases and a jump in market volatility set the stage for active managers to exploit possible ups and downs in prices. Adding to factors lining up in active managers’ favor were investor concerns about a downturn and a possible trade war that slowed flows into funds that mimic markets.

Net inflows into cheap index funds abated, raising active managers’ hopes that stock picking would stage a resurgence.

But in the race for returns in the past year, passively managed funds won again: Just 36% of actively managed U.S. stock funds outperformed index mutual funds and exchange- traded funds in the year ended June 30, according to data compiled by research firm Morningstar Inc. That is down from the 43% that did so in 2017.

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