Ann: Trading Halt, page-11

nVanguard and Blackrock are already the worlds largest fund managers. They are for the most part, passive index funds.

Active management has its place. I’m just pointing out statistically that most active managers cannot beat a passive index fund over 5-10 years. It’s especially difficult to do so when you have 10s of billions of FUM. Unlike an individual or HNWI who can make alpha from intraday positioning or simply volume. ie they don’t need to buy $2bn of an individual stock to gain a relatively large exposure. That in itself would move share prices, thus comprising alpha. Hence passive is often best for large institutional funds.