Passive-only fund of funds outperform active counterparts - Morningstar

Fees play a big part

David Brenchley
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Fund of funds come out better on a risk-adjusted basis
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Fund of funds come out better on a risk-adjusted basis

Funds of fund strategies investing only in index or smart-beta instruments have performed better than those investing only, or mainly, in active funds over the past five years, research from Morningstar shows.

In absolute terms, across six different investment categories, where there were passive-only fund of funds, Morningstar's data showed the passive-only option outperformed their counterparts investi...

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