Business
Over the last decade, the dominant trend in the asset management industry has been the flow from active to passive products. According to Morningstar, actively managed U.S. stock funds posted outflows in 11 out of the last 12 years. Indeed, as of the middle of 2019, passive and active U.S. equity funds each had a total of about $4.3 trillion in assets, essentially reaching asset parity. What has been the underlying driver of that trend? And what, if anything, will cause it to reverse?