What was the biggest surprise to hit the markets in 2014? I think most investors would tell you it was either that interest rates fell or that the price of a barrel of oil fell by half. My own view is that there was a far bigger one.
For the 12 months ended August 2014, equity index funds and ETFs attracted $131 billion in net cash inflows, while actively managed funds suffered outflows of $55 billion.
These figures shouldn’t shock anyone, given the consistently poor performance of actively managed funds.
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