Great graphs/visuals at the end of this article online.

Why index investors are suddenly coming under attack

Link: Why index investors are suddenly coming under attack

Quote1: “An overwhelming majority of neutral studies continue to praise index funds for their ability to deliver better returns than active managers.“Put bluntly, investors are more aware than ever before that they are often paying active money managers to lose money for them and that they now have the option to do something about this disservice,” says Aswath Damodaran, a professor of finance at New York University.”

Quote2: “So why pay lush fees to a manager who may or may not do better than average? Better to buy a benchmark that represents the more-or-less average return of all those smart managers before fees. A cheap index fund ensures you get whatever the market delivers at the lowest possible cost.  The proof is in the profits. Over the past five years, 71 per cent of actively managed Canadian equity funds have failed to keep up with the index. In the United States, eight out of 10 actively managed funds have lagged behind the benchmark over the past decade.”