Morningstar Uk: Podcasts

Welcome to the podcast from Morningstar UK, the leading provider of independent investment research. This week we’re going to take a look at Passive investing. When Jack Bogle, founder of Vanguard Asset Management launched the first passive fund in 1975 he was called “un-American”. The financial industry was so against his plan to revolutionise the way that we invest, a campaign was mounted insinuating Bogle was unpatriotic and a fool. Fast forward three decades and new money invested in passive funds is growing at much faster pace than actively managed funds. In the US last month, investors pulled $18 billion out of active funds, but invested $49 billion into passive funds. The story is similar this side of the pond, the fastest growing part of the market is passively managed funds – and in particular those which are “smart”, or “strategic” and offer investors access to a certain slice of the market. But what exactly is a passive fund? And are they better than actively-manged funds in all circumstances? Whe