Fund Investing: Is Now the Time to Go Active in the US?

The past decade has been profitable for passive investing, particularly in the US. But could we be poised for this to reverse and for active managers to outperform?

David Brenchley 20 December, 2018 | 12:29PM
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Wall Street, US equities, S&P 500, US stocks, active investing, passive investing, active management

For investors looking to build a globally diversified portfolio, the argument is strong for going passive for US equities. That’s because the blue-chip S&P 500 is seen as the most efficient market in the world and therefore investors - professional and individual like - find it hard to get an edge.

It’s also “an incredibly diverse index”, says Gary Potter, co-head of multi-manager solutions at BMO GAM. He adds: “Even with the advent and progress of the FAANG stocks over the last 18 months, the S&P 500 remains one of the most diversified global stock market indices.”

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Facebook Inc A312.22 USD0.00Rating
Fidelity Index US P Acc345.04 GBP0.98Rating
Findlay Park American USD194.07 USD-0.04Rating
HSBC American Index C Acc9.22 GBP0.90Rating
JPM US Equity Income C Net Acc3.84 GBP1.01Rating
Jupiter Merian North Amer Eq I GBP Acc4.52 GBP0.44Rating
Jupiter Merlin Real Return D EUR Acc13.88 EUR1.10Rating
Netflix Inc662.92 USD0.00Rating
Schroder ISF US Large Cap C Acc USD314.60 USD0.18Rating
UBS US Growth C Acc275.31 GBP0.98Rating
Vulcan Value Equity II EUR Inc Hdg149.16 EUR-0.71

About Author

David Brenchley

David Brenchley  is a Reporter for