Mutual Funds, Eviscerated by ETFs, Face New Humiliation, Moody’s Says

Moody’s Investors Service predicts active stock- and bond-picking firms’ share of the money-management industry will be overtaken as soon as 2021 by ‘passive’ vehicles like index-tracking mutual funds and exchange-traded funds. There’s no end in sight for the woes facing big asset-picking firms. The computer is winning, and so are investors in their ongoing quest to avoid outsize fees charged by human stock-pickers. A shakeout in the money-management industry is poised to hit a crucial juncture Read the full story

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