Don't call it a comeback. Seriously.
reports that the stock bull run is kindling hopes that active fund managers could enjoy a resurgence in popularity. However, the pub says "Wall Street pros warn changing industry dynamics—and investor attitudes—will make a return to center stage difficult."
has this to say on the subject:
In fact, some critics argue, despite improving returns, active funds may never fully reverse their decline in popularity. One key factor: The success of new investments like ETFs, which encourage a style of investing that involves betting on segments of the market rather than individual stocks, and which also put a relentless emphasis on investment costs. ETF companies haven’t been shy about touting the importance of keeping costs down in newspaper ads and conference speeches, and many think that lesson may now never be unlearned. “People are more conscious about fees,” says Michael Rawson, an analyst at researcher Morningstar.
For more on the quashed hopes of active managers, read MarketWatch
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