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Morningstar's Active/Passive Barometer March 2021

Ben Johnson, CFA  |  16 Jun 2021Text size  Decrease  Increase  |  
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The Morningstar Active/Passive Barometer is a semiannual report that measures the performance of U.S. active funds against passive peers in their respective Morningstar Categories.

The Active/Passive Barometer spans nearly 4,400 unique funds that accounted for approximately $15.9 trillion in assets, or about 67% of the U.S. fund market, as of the end of 2020.

Although this report focuses on funds, the same concept applies to any collective investment vehicle with a professional manager, including ETFs. The coverage is for U.S active funds, but Australian investors are able to derive learnings from this due to the similarities of our markets.

At a high level, apart from domestic markets, both US and Australian fund managers have the same coverage universe for other sectors and markets. Domestic markets as well, share similar characteristics and are comparable—they are both well researched and covered.

Download this report to learn:

  • How actively managed funds have generally failed to beat their benchmarks
  • Which funds typically have long-term success rates
  • Trends in active-fund success by fee level

Download the full report (PDF)

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is director of global exchange-traded fund research for Morningstar.

© 2021 Morningstar, Inc. All rights reserved. Neither Morningstar, its affiliates, nor the content providers guarantee the data or content contained herein to be accurate, complete or timely nor will they have any liability for its use or distribution. This information is to be used for personal, non-commercial purposes only. No reproduction is permitted without the prior written consent of Morningstar. Any general advice or 'regulated financial advice' under New Zealand law has been prepared by Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892), or its Authorised Representatives, and/or Morningstar Research Ltd, subsidiaries of Morningstar, Inc, without reference to your objectives, financial situation or needs. For more information, refer to our Financial Services Guide (AU) and Financial Advice Provider Disclosure Statement (NZ). Our publications, ratings and products should be viewed as an additional investment resource, not as your sole source of information. Morningstar’s full research reports are the source of any Morningstar Ratings and are available from Morningstar or your adviser. Past performance does not necessarily indicate a financial product's future performance. To obtain advice tailored to your situation, contact a licensed financial adviser. Some material is copyright and published under licence from ASX Operations Pty Ltd ACN 004 523 782. The article is current as at date of publication.

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