In the battle between passive and active investing, there’s no question: Passive has been the clear winner. For years, the flow of new assets has gone more to low-cost, widely diversified index mutual funds and exchange-traded funds, rather than to actively managed funds. It makes sense. There is much evidence that passive investors, who are content to match the market, earn higher returns than active amateur investors, who strive to beat the market.

Source: Wall Street Journal February 10, 2020 03:11 UTC