We all know that the rise of ETFs and index funds has led to some significant cost pressures for actively managed funds. The more index funds tracking a local market index are available, the lower the flows into actively managed funds. This is why small and mid-cap funds have been more insulated from the pressures of index funds than large-cap or broad market funds.
It will be interesting to see with the relentless rise of markets due to a fed put and ever lower interest rates, is that game now over??? Easy money, market cap and momentum investing may not be the best ingredients for success for the next one to two years perhaps?
It has been very enlightening to see that most of the time index funds beat active management and have lower fees. So it must be more than naive/ timid investors that are moving into index funds---there must be a lot of thoughtful folks too....... and perhaps the flip side is also true -- that some of the investors staying with active management are naive
It will be interesting to see with the relentless rise of markets due to a fed put and ever lower interest rates, is that game now over??? Easy money, market cap and momentum investing may not be the best ingredients for success for the next one to two years perhaps?
It has been very enlightening to see that most of the time index funds beat active management and have lower fees. So it must be more than naive/ timid investors that are moving into index funds---there must be a lot of thoughtful folks too....... and perhaps the flip side is also true -- that some of the investors staying with active management are naive