Active Management's Fleeting Gains The recent surge in investor flows towards active exchange traded funds (ETFs) has been touted as a victory for those who believe that human ingenuity and judgment are essential in navigating the complexities of modern finance.
However, this trend is less about a seismic shift in market dynamics than a temporary aberration from the dominant passive investing paradigm.
Active fixed income ETFs have managed to keep pace with their passive counterparts, and even lead in core categories when niche products are excluded.