Tag #Active Investment

How does the growing preference for ETFs challenge the traditional active management approach, and what factors contribute to this shift?

The rising popularity of ETFs reflects a shift towards passive investment strategies, particularly as active management struggles to outperform market indices, especially in well-analyzed markets like the US. This is evidenced by the high subscription rates for ETFs replicating major indices like the S&P 500, MSCI World, and Nasdaq 100. The expansion of thematically focused ETFs, mirroring active management's targeted approach, also contributes to this trend.