Half of US stock fund assets are now invested in index funds

It’s (almost) official: Passive funds have just about reached parity with actively managed ones in the US stock market. Investors have put $4.305 trillion into passive US stock market funds as of April 30, only $6 billion shy of the $4.311 trillion overseen by active US equity funds, according to a Morningstar report. Passive fund managers can still make money in multiple ways, such as by cross-selling other products to customers, including higher-fee passive funds that track an innovative index, such as so-called smart beta or factor investing products.

Source: qz.com