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
Rating
Facebook Inc A356.30 USD0.00Rating
Fidelity Index US P Acc319.51 GBP-0.40Rating
Findlay Park American USD187.48 USD0.03Rating
HSBC American Index C Acc8.67 GBP0.24Rating
JPM US Equity Income C Net Acc3.61 GBP0.62Rating
Jupiter Merian North Amer Eq I GBP Acc4.40 GBP0.55Rating
Jupiter Merlin Real Return D EUR Acc13.61 EUR0.59Rating
Netflix Inc517.57 USD0.00Rating
Schroder ISF US Large Cap C Acc USD299.39 USD-0.03Rating
UBS US Growth C Acc255.25 GBP-0.30Rating
Vulcan Value Equity II EUR Inc Hdg148.48 EUR0.35

About Author

David Brenchley

David Brenchley  is a Reporter for Morningstar.co.uk

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