Performance shades merits of active management

Rochester Business Journal
NOVEMBER 11, 2016
Mark Armbruster

I come to praise active management, not to bury it.  Active management has been much maligned recently, including in this column, because of the increasing dominance of index investing over active stock picking.

Indeed, according to estimates from Morningstar, actively managed U.S. stock funds have seen outflows of over $185 billion so far this year. By comparison, U.S. stock market index funds have attracted almost $125 billion in new assets. What’s driving this disparity?