As sponsors and 401(k) participants continue to channel more assets into passively managed mutual funds, new data from Fidelity suggests retirement savers would be wise to not throw the baby out with the bathwater in shunning actively managed U.S. large cap equity funds.
Some actively managed U.S. equity funds have historically outperformed benchmarks, and delivered greater returns than passively managed funds, net of fees, according to a new Fidelity paper, "Some Active Funds Rise Above a Tough Year."
On balance, the average returns for active funds lag indices — a fact that perhaps best explains the exodus from active investments to passively managed index funds and ETFs.
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Nick Thornton
Nick Thornton is a financial writer covering retirement and health care issues for BenefitsPRO and ALM Media. He greatly enjoys learning from the vast minds in the legal, academic, advisory and money management communities when covering the retirement space. He's also written on international marketing trends, financial institution risk management, defense and energy issues, the restaurant industry in New York City, surfing, cigars, rum, travel, and fishing. When not writing, he's pushing into some land or water.
