The study goes on to show that when passively managed funds are compared to these competitively priced actively managed funds, there is no economically meaningful difference in performance between active and passive.
The author concludes that as long as investors are cost conscious in their fund selection process, the active versus passive choice is basically irrelevant. We think these results make a lot of sense, and that investors should indeed focus on costs instead of taking a dogmatic stance in the highly polarized active versus passive debate.
1 Nanigian, ‘The Historical Record on Active vs. Passive Mutual Fund Performance’, working paper, 2018.
Our researchers publish many whitepapers based on their own empirical studies; they also follow quantitative research done by others.
Neither information nor any opinion expressed on the website constitutes a solicitation, an offer or a recommendation to buy, sell or dispose of any investment, to engage in any other transaction or to provide any investment advice or service. An investment in a Robeco product should only be made after reading the related legal documents such as management regulations, prospectuses, annual and semi-annual reports, which can be all be obtained free of charge at this website and at the Robeco offices in each country where Robeco has a presence.
Please confirm that you are a professional investor and/or institutional investor and that you have read, understood and accept the terms of use for this website.