Are Active Funds Better in Less-Efficient Markets?

Active outperformance is not easy in any market but stands a better chance when fees are low

Christine Benz 26 August, 2016 | 11:30AM
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Christine Benz: Hi, I'm Christine Benz for Morningstar.com. Does it make sense to use index funds and exchange-traded funds for more efficient pockets of the market, and use active funds for the less efficient pockets of the market? Joining me to discuss some research on this topic is Alex Bryan. He is director of passive strategies research for Morningstar in North America.

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About Author

Christine Benz

Christine Benz  is director of personal finance at Morningstar and author of 30-Minute Money Solutions: A Step-by-Step Guide to Managing Your Finances.