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!
Fort Myers Beach is becoming the front line of a new Florida—one shaped by hurricane devastation, soaring insurance premiums, and rapid gentrification. Three years after Hurricane Ian, residents are still battling massive rebuilding costs and insurance bills that now exceed $5,700 a year on average, with flood insurance reaching $10,000 for some families. Long-time locals, small businesses, and service workers are being priced out as wealthy investors move in, transforming once-affordable coastal communities. Real estate professionals warn that foreclosures may rise if economic pressures continue, signaling a pivotal moment for Florida’s housing market and the professionals who serve it.
Economic uncertainty, AI disruption, slowing population growth, and rising portfolio risk are reshaping commercial real estate heading into 2026. A new report unveiled at NAR NXT highlights the forces that will reward informed professionals — and challenge those who aren’t prepared. From fiscal policy and shifting capital flows to tech transformation and housing shortages, the landscape is evolving fast. Cameron Academy breaks down the key issues so real estate, mortgage, finance, and insurance professionals can stay ahead of the curve.
A sudden federal shutdown of FEMA’s BRIC resiliency program has left cities and commercial property owners scrambling, exposing billions in real estate to rising climate threats. With nearly a billion dollars in mitigation funding clawed back and extreme weather intensifying, insurance premiums are expected to surge and coverage may shrink — placing new pressure on markets like Florida and New York.
A new Florida Senate bill aims to stop cities and counties from blocking residential developments over vague “compatibility” concerns. Supporters say the measure would speed up homebuilding and ease housing shortages, while opponents argue it strips communities of essential oversight and could accelerate growth without proper planning. The proposal could reshape development timelines and land-use decisions statewide, making it a major issue for real estate professionals to watch.
Cape Coral–Fort Myers has officially moved into buyer-friendly territory, with homes now sitting a median 119 days on the market—far longer than both the Florida and U.S. averages. Rising inventory, a 36.9 percent price‑reduction rate, and slower absorption compared to accumulated supply are giving buyers more leverage and time to negotiate, signaling a meaningful reset in this once‑fast‑moving Florida market.
Kansas City’s commercial real estate sector is finally turning a corner after several years of sluggish activity. Retail is leading the rebound, while multifamily and industrial properties are gaining traction as pricing stabilizes and buyer confidence returns. A standout 2025 transaction—the sale of the 380‑unit Cyan Southcreek community—signals that capital is flowing back into the market. With bid‑ask spreads tightening and investor optimism rising, Kansas City is entering a period of renewed opportunity for real estate professionals and investors alike.
: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")
Florida’s Middle Class Is Being Squeezed Out: Insurance Costs, Rebuilding Struggles, and a Changing Coastline Gallery
