Mar 18, 2016

Chart: Who's Winning? Active or Passive Investing?

Hat tip to Big Picture Blog for pointing to this Quartz chart on how fund flows have shifted:

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So, who's winning, active vs passive investing?

As the writer of the article Matt Phillips succinctly tweeted, “Bogle Won.” Bogle, being Jack Bogle, the founder of Vanguard Group, who pioneered the concept of the index fund. As the chart above shows, since 2007, investors have consistently fled actively managed funds and shifted their assets into index mutual funds and ETFs.

Want to learn more about the origins of the Index Fund and how the investment landscape is shifting, check out this podcast with Jack Bogle.

About the Author

Tim Ranzetta

Tim's saving habits started at seven when a neighbor with a broken hip gave him a dog walking job. Her recovery, which took almost a year, resulted in Tim getting to know the bank tellers quite well (and accumulating a savings account balance of over $300!). His recent entrepreneurial adventures have included driving a shredding truck, analyzing executive compensation packages for Fortune 500 companies and helping families make better college financing decisions. After volunteering in 2010 to create and teach a personal finance program at Eastside College Prep in East Palo Alto, Tim saw firsthand the impact of an engaging and activity-based curriculum, which inspired him to start a new non-profit, Next Gen Personal Finance.

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