The Morningstar US Active/Passive Barometer for 2024 provides insightful data on how active funds have been performing compared to their passive counterparts. Over the past decade, active funds have faced challenges, marked by consistent outflows and difficulty in outperforming passive funds. However, the total assets in US passive mutual funds and ETFs exceeded those of active funds for the first time.
Despite these trends, active management is far from obsolete. Active managers have managed to compensate for outflows through strategies like asset appreciation and fee bases during lucrative market conditions. Yet, the changing market environment could pose challenges.
Key Findings from the Morningstar US Active/Passive Barometer:
Success Rates: In 2024, active small-cap managers had a higher success rate (43%) compared to mid-cap (37%) and large-cap (37%) managers. However, over the last decade, only 7% of active large-cap funds survived and outperformed their passive counterparts.
Challenges in Large-Cap Equity: Only 7% of active US large-cap funds managed to survive and outperform passive competitors over the past decade. However, there was an improvement in their performance in 2024, with a success rate increase to 37%.
Success in Small-Cap Categories:Active small-cap funds performed better over the long term, with a 43% success rate in 2024, suggesting that the market is less efficiently priced in this category.
Real Estate and Fixed Income: Actively managed US real estate funds displayed the highest success rate among all categories with 47% succeeding over the past decade. In fixed income, active bond managers saw increased success rates in 2024, particularly in intermediate core bonds, corporate bonds, and high-yield bonds.
Active management remains a viable option for certain categories, notably in real estate and fixed income markets. The Morningstar report provides a comprehensive analysis that aids financial advisors in understanding the dynamics of active versus passive fund performance.
The original article on Morningstar discusses these findings in detail, highlighting the importance of the Active/Passive Barometer as a tool for evaluating investment strategies, offering insights into fees, market dynamics, and success rates across various fund categories.
More Articles
Getting licensed or staying ahead in your career can be a journey—but it doesn’t have to be overwhelming. Grab your favorite coffee or tea, take a moment to relax, and browse through our articles. Whether you’re just starting out or renewing your expertise, we’ve got tips, insights, and advice to keep you moving forward. Here’s to your success—one sip and one step at a time!
The title and real estate industries are entering their most dramatic compliance overhaul in decades. FinCEN’s new anti‑money‑laundering rule now applies to every state, enforces a first‑dollar reporting requirement, and places full responsibility on settlement agents. With the rule already in effect and mandatory reporting beginning March 1, 2026, professionals face urgent operational changes involving software, training, and entity‑buyer disclosures. Combined with state‑level rate shifts and heightened scrutiny of attorney opinion letters, 2025 marks a turning point that demands stronger compliance literacy across the entire real estate and finance ecosystem.
Retirement planning went through major changes in 2025, from new SECURE Act updates to shifting investment behaviors. As we move into 2026, seven key trends are reshaping how Americans save and build long‑term wealth. These shifts matter not only for everyday investors but also for professionals across real estate, finance, mortgage, insurance, and other licensed fields. Understanding these developments can help you strengthen your own financial strategy while staying competitive in your career.
Florida’s housing market is cooling faster than any other state, and soaring insurance premiums are the primary force driving buyers away. With cancellation rates in major metros topping 20%, steep price drops across Southwest Florida, rising HOA and condo fees, and thousands of homes added to new flood zones, many buyers are discovering that insurance—not the mortgage—is what kills the deal. As Citizens shrinks and new legislation raises coverage requirements, professionals in real estate, mortgage, and insurance must adapt quickly to a market where affordability hinges on risk, regulation, and rising premiums.
Commercial real estate is entering 2026 with renewed optimism as pricing floors, revitalized capital markets, and improved market visibility signal a shift away from the volatility of 2025. Analysts from Deloitte, Colliers, Cushman & Wakefield, and CoStar highlight firmer fundamentals, rising deal flow, and increased lender participation. Key sectors such as office, industrial, retail, multifamily, and data centers are showing distinct recovery patterns, positioning industry professionals and students for new opportunities in the year ahead.
Florida’s property insurance market is finally stabilizing after years of storms, lawsuits, and rising rates — yet many homeowners are still seeing higher bills. The reason isn’t the rates themselves but soaring replacement values driven by inflation in labor and building materials. Even as insurers lower rates, the cost to rebuild a home continues to rise, making up roughly 75% of recent premium increases. With new insurers entering the market and reforms taking effect, homeowners now have more options to shop, recalculate coverage, and control their costs.
The 2026 job market is shifting fast, and the biggest winners will be professionals who can prove they’re continuously learning. With more than 90% of employers now preferring candidates with microcredentials, short targeted certificates are becoming the new career currency. From AI and data skills to modern communication and adaptability, microcredentials are helping workers stand out in a competitive landscape — especially as industries like real estate, mortgage, insurance, and finance demand ongoing upskilling.
:quality(80)/cloudfront-us-east-1.images.arcpublishing.com/morningstar/GSRW3O6SIBE4NNTDL3KBGXHHYU.png "Morningstar Us Active/Passive Barometer For 2024 Reveals Trends In Fund Performance 2")
:quality(80)/cloudfront-us-east-1.images.arcpublishing.com/morningstar/FVUD4QYNQ5EIDCMVL5CBIE4NQE.png "Morningstar Us Active/Passive Barometer For 2024 Reveals Trends In Fund Performance 3")
:quality(80)/cloudfront-us-east-1.images.arcpublishing.com/morningstar/WWSWFEN4HRDQFMQAJQ2L6PNWLM.png "Morningstar Us Active/Passive Barometer For 2024 Reveals Trends In Fund Performance 4")
