Passive management inflows come from outflows from active management around the world

The reality is much more heterogenous:

In the United States it is a given in equity but not in fixed income. In equity, passive funds inflows totaled €2.5trn while active funds saw €1.6trn of outflows over the last 10 years. In fixed income, passive funds saw €1.2trn of inflows and active funds inflows of €945bn over the same period.

In Europe, this is not the case neither in equity nor in fixed income. In equity, passive funds inflows totaled €537bn and active funds had inflows of €109bn over the last 10 years. In fixed income passive funds had inflows of €365bn and active fund inflows totaled €1trn over the same period (source Morningstar Sept 2020).

I am convinced, as an expert in portfolio construction, that investors need reliable and comprehensive data to optimize portfolio construction.