Active managers might look more attractive, but logic of index strategies remains the same Active management is beckoning fund investors again.ILLUSTRATION:MARINA MUNN FOR THE WALL STREET JOURNAL By JONATHAN BURTON Updated March 5, 2017 10:44 p.m. ET 0COMMENTS Active mutual-fund managers are enjoying a moment in the sunshine, after a long period of darkness. Consider that 50% of large-cap blend funds topped the S&P 500 index over the six months through February, and 57% of large-growth funds beat the S&P 500 Growth Index, according to research from Leuthold Group, using data from investment researcher Morningstar. Meanwhile, active has also stood out among small-cap blend funds, where 52% beat the Russell 2000 benchmark. JOURNAL REPORT Insights fromThe Experts Read more atWSJ.com/FundsETFs MORE IN INVESTING IN FUNDS & ETFS Here Come ETF Regulations Why April 15 Isn’t ‘Tax Day’ Target-Date Funds After Retirement U.S.-Stock Funds Rose 2.7% in Month Three Ways to Value Gold Still, an array of experts say investors and advisers who have embraced index funds should be wary of switching sides, despite active management’s current enticing call. Investors favoring indexed products for the stock portion of their portfolio should keep in mind their good reasons for doing so, these experts say. The majority of mutual-fund managers routinely lag behind their benchmark stock indexes and the corresponding index funds and index-tracking exchange-traded funds they are paid to beat. https://www.wsj.com/articles/a-skeptics-guide-to-a-revival-in-active-fund-management-1488769681
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