Is index-hugging the way to go or do active managers earn their keep?

Is index-hugging the way to go or do active managers earn their keep?
Jenny Ruth
One outcome of ultra-low interest rates is that, like a receding tide uncovering flotsam, it highlights how much fund managers charge investors in their funds and increases downward pressure on those fees.That's particularly true for those managing equities funds, given the rise and rise of index-hugging passive funds – according to Statista, passive funds globally accounted for 31% of managed funds in 2020, up from 14% in 2011.The pioneer of index-hugging funds was Vanguard founder Jack Bogle who debuted his first passive mutual fund...

More Finance

Port of Auckland to pay $45m special dividend to council
Finance

Port of Auckland to pay $45m special dividend to council

The divestment proceeds will be used to top up the Auckland Future Fund.

Oliver Lewis 27 Jun 2025
$600m in tourist spend at risk from regulation: Mastercard
Finance

$600m in tourist spend at risk from regulation: Mastercard

When Europe cut interchange fees, foreign card decline rates soared.

Pattrick Smellie 27 Jun 2025
Michael Lorimer exits Grant Samuel amid more sector change
Finance

Michael Lorimer exits Grant Samuel amid more sector change

Lorimer has sold his 80% stake in the corporate advisory firm.

Duncan Bridgeman 26 Jun 2025