Equity mutual funds suffered redemptions in 2008, only the third time in their history that they have had outflows. Actively managed funds lost $221.08 billion, while index funds took in $17.6 billion.
Some people who get their hands burned by these market drops move from active to passive [management], and every time some of them stay there, Scott Burns, an analyst with
It could be that some people are adopting [
Index funds, with $490 billion in assets under management, now comprise 13.2% of total assets in mutual funds, up from 11.8% in 2007. Actively managed funds hold $3.2 trillion.