Why passive investing is best for almost everyone saving for retirement
Investing in market-tracking index mutual funds, known as passive investing, gets brandished as boring.
But the truth is in the returns: Index funds routinely clobber funds actively managed by professional stock pickers.
Last year was no exception, according to a new BofA Global Research report. Funds run by the pros had a heck of a time beating the returns of passive indexes that track US large-cap equities.
Just 36% of actively managed US large-cap mutual funds, for example, delivered bigger gains than their Russell 1000 index benchmarks in 2024.
The Russell 1000, an equities index that provides exposure to companies such as Apple, Nvidia, Microsoft, Amazon, and Facebook parent Meta, had lots of oomph behind it with…
