Morningstar - Q3 2024 - 23
Spotlight
State of Active
Investing
Why Active Investing Works in Fixed Income
Active Funds Try to Raise Their Game
30
33
Active ETFs Riding High
They offer a cost-effective tool
for active investors, but
the structure has drawbacks.
ACTIVE ETFS
Bryan Armour, Ryan Jackson, Zachary Evens,
Stephen Welch, Paul Olmsted, and Adam Millson
It's hard to find promising areas of the active
fund industry. Most active managers consistently
fail to beat their passive peers, especially over
longer periods. According to Morningstar research,
fewer than one out of every four active funds
topped the average of their passive rivals over the
10-year period ended December 2023.1
Meanwhile,
over that same period, actively managed
mutual funds had an average organic growth rate
of negative 2% per year. With outflows totaling
$1.6 trillion in 2022 and 2023, it appears the
decline of active mutual funds is picking up steam.
But one area of active investing seems to be
gaining traction: active exchange-traded
funds. Starting from near zero two decades ago,
active ETFs have enjoyed steady growth and
now claim a meaningful piece of the actively
managed fund pie. The average annual organic
growth rate of assets for the group was 37% in the
past 10 years and shows no signs of slowing
( EXHIBIT 1 ). Today, US investors have access to
1,326 active ETFs covering most types of
1 Armour, B., Jackson, R., & Boyadzhiev, D. 2024. " Morningstar's US Active/Passive Barometer: Year-End 2023. " Morningstar.
morningstar.com/products/magazine
23
https://www.morningstar.com/lp/active-passive-barometer
http://www.morningstar.com/products/magazine
Morningstar - Q3 2024
Table of Contents for the Digital Edition of Morningstar - Q3 2024
Morningstar - Q3 2024 - Cover1
Morningstar - Q3 2024 - Cover2
Morningstar - Q3 2024 - 1
Morningstar - Q3 2024 - 2
Morningstar - Q3 2024 - 3
Morningstar - Q3 2024 - 4
Morningstar - Q3 2024 - 5
Morningstar - Q3 2024 - 6
Morningstar - Q3 2024 - 7
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Morningstar - Q3 2024 - 30
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Morningstar - Q3 2024 - 35
Morningstar - Q3 2024 - 36
Morningstar - Q3 2024 - 37
Morningstar - Q3 2024 - 38
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Morningstar - Q3 2024 - 40
Morningstar - Q3 2024 - 41
Morningstar - Q3 2024 - 42
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Morningstar - Q3 2024 - 46
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Morningstar - Q3 2024 - 48
Morningstar - Q3 2024 - 49
Morningstar - Q3 2024 - 50
Morningstar - Q3 2024 - 51
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Morningstar - Q3 2024 - 53
Morningstar - Q3 2024 - 54
Morningstar - Q3 2024 - 55
Morningstar - Q3 2024 - 56
Morningstar - Q3 2024 - 57
Morningstar - Q3 2024 - 58
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Morningstar - Q3 2024 - 60
Morningstar - Q3 2024 - 61
Morningstar - Q3 2024 - 62
Morningstar - Q3 2024 - 63
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Morningstar - Q3 2024 - 65
Morningstar - Q3 2024 - 66
Morningstar - Q3 2024 - 67
Morningstar - Q3 2024 - 68
Morningstar - Q3 2024 - 69
Morningstar - Q3 2024 - 70
Morningstar - Q3 2024 - 71
Morningstar - Q3 2024 - 72
Morningstar - Q3 2024 - Cover3
Morningstar - Q3 2024 - Cover4
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https://www.nxtbook.com/nxtbooks/morningstar/magazine_20151011
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https://www.nxtbook.com/nxtbooks/morningstar/advisor_20141201
https://www.nxtbook.com/nxtbooks/morningstar/advisor_20131011
https://www.nxtbook.com/nxtbooks/morningstar/advisor_20130809
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https://www.nxtbook.com/nxtbooks/morningstar/advisor_20120405
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https://www.nxtbook.com/nxtbooks/morningstar/advisor_20120203
https://www.nxtbook.com/nxtbooks/morningstar/advisor_20121201
https://www.nxtbook.com/nxtbooks/morningstar/advisor_20111011
https://www.nxtbook.com/nxtbooks/morningstar/advisor_20110809
https://www.nxtbook.com/nxtbooks/morningstar/advisor_20110607
https://www.nxtbook.com/nxtbooks/morningstar/advisor_20110405
https://www.nxtbook.com/nxtbooks/morningstar/advisor_20110203
https://www.nxtbook.com/nxtbooks/morningstar/advisor_20111201
https://www.nxtbook.com/nxtbooks/morningstar/advisor_20101011
https://www.nxtbook.com/nxtbooks/morningstar/advisor_20100809
https://www.nxtbook.com/nxtbooks/morningstar/advisor_20100607
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