Recent studies show that passive investing now outweighs active investing

By Stephen Bennie

I recently saw a chart in a broker daily note that gave me some pause. It wasn’t exactly a revelation, but it did shock me. I think the main reason was that the time frame of the chart did not strike me as that long. It must be a sign of getting on in years when a chart with a 15-year history seems like a short amount of time. For me it matches the time in my career when I worked at Tower Investments and then these past 10 years at Castle Point. Those years have flown by and suddenly all my children are at university not primary school. And all the while that has been going on, the world of investing has been undergoing a steady but nonetheless remarkable swing towards passive investing.

The remarkable swing towards passive investing