Kepler Trust Intelligence's Jo Groves: How to avoid paying alpha prices for beta performance

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Almost nine in ten active equity managers have underperformed their passive peers over the past decade, leaving investors paying for alpha but receiving little more than beta.

In fairness, it is a tall order to expect active US managers to outrun the gravy train of the Magnificent Seven, but Morningstar's latest Active-Passive Barometer makes for stark reading. Just 4% of active US large-cap managers beat their passive peers over the last ten years and, India aside, few markets fared much better. Capital markets roundup: H1 2025 In truth, none of this is new news. We already know passives have eclipsed actives in investors' affections (the $15trn currently parked in ETFs certainly leaves little doubt). However, not all funds are created equal, and the...