What Are The Implications Of The Shift Towards Passive Funds?

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Rupert Hargreaves
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What are the implications of the shift towards passive funds? That’s the question JP Morgan’s global asset allocation analysts attempt to answer in last week’s issue of the bank’s Flows & Liquidity research report. Massive Divergence Between Passive And Active Flows Seek Out The Opposing View; Passive Investing The Rise Of ETFs And Passive Investing [Chart] JP Morgan’s research shows that close to 30% of US domiciled funds are now following passive strategies. The benefits to investors from following passive strategies are clear — lower fees and higher returns (compared to the indexes) are the most cited advantages — but…

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Sign up now and get our in-depth FREE e-books on famous investors like Klarman, Dalio, Schloss, Munger Rupert is a committed value investor and regularly writes and invests following the principles set out by Benjamin Graham. He is the editor and co-owner of Hidden Value Stocks, a quarterly investment newsletter aimed at institutional investors. Rupert owns shares in Berkshire Hathaway. Rupert holds qualifications from the Chartered Institute For Securities & Investment and the CFA Society of the UK. Rupert covers everything value investing for ValueWalk