Passive Investing: A Winning Choice

Investing can seem overwhelming, especially with the plethora of options available. However, recent findings indicate that passive investing, particularly through index funds, consistently outperforms actively managed funds. A report from BofA Global Research revealed that in 2024, only 36% of actively managed U.S. equity funds beat their benchmark, the Russell 1000, which includes tech titans such as Apple and Microsoft.

The data show that over a span of two decades, actively managed funds have struggled to keep pace with the benchmark S&P 500, with a staggering 86% underperforming in the last three years alone. In 2024, a mere 19% of U.S. equity mutual funds and ETFs surpassed the S&P 500, which…