Hedge Funds Are Status Symbols

What was the biggest surprise to hit the markets in 2014? I think most investors would tell you it was either that interest rates fell or that the price of a barrel of oil fell by half. My own view is that there was a far bigger one.

For the 12 months ended August 2014, equity index funds and ETFs attracted $131 billion in net cash inflows, while actively managed funds suffered outflows of $55 billion.

These figures shouldn’t shock anyone, given the consistently poor performance of actively managed funds.

Read the rest of the article on ETF.com.