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What You Need to Know About Active vs. Passive Investing

Are investors better served by passive or active funds?

By Rachel Warren – Updated Nov 4, 2024 at 9:17AM

Key Points

  • Active funds aim to outperform indexes but often underperform after fees.
  • Passive funds aim to match indexes and have much lower fees.
  • In 2023, passive funds had inflows of $244B; active funds reported outflows of $257B.
Key findings are powered by ChatGPT and based solely off the content from this article. Findings are reviewed by our editorial team. The author and editors take ultimate responsibility for the content.

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