Excerpt from CNBC quoting DataTrek’s Nick Colas’ TV interview:
…. “DataTrek Research co-founder Nick Colas said in the same interview that there’s also a big-picture reason for investors’ push into passive funds.
“The biggest issue is, when the mutual funds were growing from 1980 to 1999, the S&P compounded at 18% a year,” the data specialist said. “Last 20 years, it’s been 6%. So, we’ve had a third of the returns, structurally, that we had from the early ’80s, and that’s why you need passive management, to not pay those high fees because you can’t afford it”….
Read the full article here on CNBC!