EM Insight: Active Fund Managers Lose Out to ETFs, Again

The video discusses the performance of active and passive funds in the stock market, highlighting that passive funds have outperformed active ones in recent years. Despite expectations that active funds would excel in declining markets, both have seen outflows, with active funds losing more. A detailed analysis of 775 mutual funds shows that only a few are outperforming the market index, and positive returns are rare, mainly from short-selling funds. The video concludes that active fund managers are not yet shedding their underperforming reputation.

What factors have contributed to the underperformance of active funds in the current market slump?

What is the significance of the number of mutual funds that are outperforming the Emerging Markets Index?