Passively managed funds beat their actively managed peers by a wide margin, a new study shows. The trend filters across all fund categories, and the comparison would be even starker had the data included managed funds that have since been merged into better-performing funds.

The study, conducted by a division of Fulcrum Financial Inquiry called Fulcrum Financial, looked at 10 years of mutual fund data and found that the funds’ benchmark indices perform markedly better than actively managed funds by about 3-1.

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.