Mutual Funds

Avoid active strategies that engage in individual security selection and/or market timing.

The updated framework introduces a new method that Morningstar says is more precise in assessing how much alpha a managed investment can add. Nearly one-fifth of the 200,000 funds the firm rates will be affected, mostly as downgrades.

Morningstar’s latest U.S. Active/Passive Barometer compared active and passive fund performance over the year ending in June.

YCharts profiled 10 active ETFs that have been particularly popular with RIAs so far in 2024. ETF.com has published a guide to leveraged ETFs. These are among the investment must reads we found this week for wealth advisors.

In its annual “Mind the Gap” study, Morningstar found that average investors lose out on 15% of fund returns.

Vance Howard’s HCM Tactical Growth Fund has beaten 96% of its peers over the last five years with an annualized gain of 20%. 

But the pace of declines is beginning to slow down as many passive funds are already charging only a few basis points.

Active management is a loser’s game.

The SEC will likely revamp a plan that would have forced asset managers to change part of their pricing models.

Allspring Global Investments plans to start offering actively managed ETFs.