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Rise of Passive Funds and Actively Managed ETFs
This chapter explores the shift of funds from active mutual funds to passive mutual funds and ETFs, focusing on the significant outflows from active managers like American Funds and Fidelity. Vanguard emerges as the largest fund family with a 28% market share, showcasing the trend of active funds losing assets to passive ones, particularly ETFs, with a spotlight on the largest actively managed ETF, the JP Morgan equity premium income ETF.