According to a report by the Financial Times, $450

According to a report by the Financial Times, $450 billion of funds has been leaked from active funds (fund seeking excess returns compared to BM due to active management by managers, most domestic and foreign equity funds belong to this year), moving to a cheaper index-following investment method

- $450 billion (about 662 trillion won) has been withdrawn from active funds this year

- This is above last year's $413 billion outflow and shows how passive investments and ETFs are encroaching on the active fund market

- This trend has accelerated as older people, who traditionally prefer active funds, retire and withdraw funds, and younger people prefer cheaper passive strategies

- Shares of asset managers such as Franklin Resources, T Rowe Price, Schroder and Britain's Everdeen, whose main business model is active, are much weaker than those of BlackRock, which runs ETF businesses

- T Rowe Price, Franklin Templeton, Schroder And Capital Group With $2.7 Trillion Outstanding Funds In 2024

- According to Morningstar, the average return on the Active strategy is 20% annual return after taking into account fees and 13% annual average over the past five years, while passive fund returns are 23% and 14%, respectively

- The average annual cost of active funds is 0.45%, 9 times the benchmark-following index funds of 0.05%

- This year, $1.7 trillion was introduced into the ETF market, which increased the ETF industry's total assets by 30% to $15 trillion

- In response, many traditional mutual fund houses, such as Capital, Towe Price, and Fidelity, are trying to attract the next generation of investors by implementing their active strategies as ETFs, which have achieved some success

From the standpoint of Fund Sales as a business, it is true that it was complicated every time I encountered such an article.

However, it is also true that ETFs that appeal to investors due to the convenience of investment are paradoxically hindering long-term investment. I wonder if there is no choice but to focus on short-term market gains because you can check the market price in real time like stocks

Structurally, I am consoling whether the fund is a better means than ETF in terms of long-term investment. In order for the public offering fund with various regulations to regain the trust of investors, I hope that management companies will make more active efforts to improve returns and improve more investor-friendly regulations.