Passive funds' share of the US market will surpass 50% no later than 2024, according to a recent report by Moody's Investors Service.
The group said lower cost and better performance in many areas will drive passive investments in the US from their current market share of 28.5% beyond the 50% mark between 2021 and 2024. Moody's: Active management will 'shrink substantially' as passives popularity grows It reached this conclusion by applying a "simple regression analysis" of market share versus time, and fitting recent AUM data for passive funds to a diffusion model that projects near-time market share growth. According to Moody's figures, the shift to passives is well on its way, with these products in the US gat...
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