Passive investing giant Vanguard's assets under management have exceeded $4tn for the first time after the end of January in which the firm pulled in more money than all of its major competitors put together. The milestone represents more bad news for active managers, who handpick stocks and assets for funds. Passive funds, which mimic indexes and strategies, are popular because they command lower fees than actively managed vehicles.
Passive investing giant Vanguard's assets under management have exceeded $4tn for the first time after a year in which the firm pulled in more money than all of its major competitors put together. The milestone represents more bad news for active managers, who handpick stocks and assets for funds. Passive funds, which mimic indexes and strategies, are popular because they command lower fees than actively managed vehicles.