According to Morningstar, investors pulled $8.6 billion from actively managed mutual funds in 2011. They invested $76 billion into index funds and $121 billion into exchanged traded funds, most of which are passive.
Perhaps investors are really beginning to wake up to the fact that actively managed mutual funds consistently underperform their benchmarks. While there will always be funds that do outperform, it is impossible for an investor to know, in advance, which funds will.
Investors cannot control the market. But they can control how much they pay to be in the market. Intelligent Investors practice low cost, passive investing, because it allows them to capture the returns of the markets with very little cost.
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