On March 11, 2021, the WSJ entitled his last article on active vs passive funds: “Stock Pickers Trailed Market Again in Roller Coaster 2020”. Looking at European domiciled funds, I found that US equity active managers have outperformed their passive counterparts by 3.4% on average in 2020 (based on Morningstar fund data). This represents an unprecedented level, a record over the past 10-years. Shouldn’t that deserve to be highlighted?
Additionally, the percentage of active managers having outperformed passive funds have nearly double compare to the 10-year average (i.e. the average of one-year results over 10 years), 41% vs 24% respectively. Is it not also worth noticing?
And I could add to the list, the strong start of 2021 for US equity fund managers as highlighted in my previous post (https://lnkd.in/gveVDyq).
👉Acknowledging the positive results of active managers in some specific periods does not mean that we are in favor of active managers.
🎯It just demonstrates that the 𝐜𝐨𝐦𝐛𝐢𝐧𝐚𝐭𝐢𝐨𝐧 𝐛𝐞𝐭𝐰𝐞𝐞𝐧 𝐚𝐜𝐭𝐢𝐯𝐞 𝐚𝐧𝐝 𝐩𝐚𝐬𝐬𝐢𝐯𝐞 𝐟𝐮𝐧𝐝𝐬 bring 𝐯𝐚𝐥𝐮𝐞 to investors’ 𝐩𝐨𝐫𝐭𝐟𝐨𝐥𝐢𝐨𝐬
Marlene Hassine Konqui