Finance
Stock market mutual funds are failing, and their survival is at stake
-
Fewer equity mutual funds are succeeding at beating
their benchmarks, according to Morningstar. -
They continue to be trounced by passive mutual funds
and cheaper products designed to track an index. -
JPMorgan and Vanguard Group this week announced
products that could put the active-management industry under
even more strain.
Stock pickers have one overarching mandate: Deliver more returns
than your benchmark index.
But fewer of them are achieving that, according to Morningstar’s
latest
semiannual report on mutual funds, which dives into how
active funds stack up against their passive peers.
The success rate — defined as beating a benchmark — among
actively managed funds this year through June was 36%, down from
43% in 2017. A smaller share of funds found success year-on-year
in 15 out of 19 categories compiled by Morningstar, with
real-estate funds seeing the most success.
“Selecting winning active managers is very difficult,” said Ben
Johnson, the author of the report and Morningstar’s director of
global ETF and passive strategies research.
“Very few of them survive. Very few of them that wind up
surviving also outperform their average passive peers over longer
time horizons.” One exception has been active foreign-stock
funds. …
Sponsored:
If you enjoyed reading this story so
far, why don’t you join Business Insider
PRIME? Business Insider provides visitors from MSN with a
special offer.
Simply
click here to claim your deal and get access to all exclusive
Business Insider PRIME benefits.
-
Entertainment7 days ago
Every single Wes Anderson movie ranked, worst to greatest
-
Entertainment7 days ago
Why is Gen Z trauma-dumping on TikTok using candy salad?
-
Entertainment6 days ago
How to watch ‘Challengers’ at home: Streaming now
-
Entertainment5 days ago
How the Pet Shop Boys became the soundtrack to ‘Industry’ Season 3
-
Entertainment4 days ago
Microsoft Copilot can now help with Excel formulas, make PowerPoints, and more
-
Entertainment4 days ago
‘We Live in Time’ review: Florence Pugh and Andrew Garfield in the biggest cinema disappointment of the year
-
Entertainment3 days ago
‘The Plucky Squire’ review: A wholesome metatextual game for the young of heart
-
Entertainment3 days ago
Prime Big Deal Days 2024: What to buy, and what to avoid buying