Skip to content
Subscriber Only
Barry Ritholtz

Active Money Management Isn’t Dead Yet

There are five niches that should survive.

Passive won’t work in some situations.

Passive won’t work in some situations.

Source: Bettmann/Getty Images

There’s a line of argument in the financial press that suggests that active money management is dying, a victim of high fees and underperformance versus low-cost indexing that captures average market returns.

Newsflash: This is anything but the case. Active investing still dominates asset management around the world, and less than “18 percent of the global stock market is owned by index-tracking investors,” according to a 2017 BlackRock Inc. analysis. That is a modest share and a clear sign that active asset management still dominates the industry.