While there is no doubt that day traders are alive and kicking the recent trend seems to be towards passive investment via the use of exchange traded funds (EFTs). Whether it is the fact that the DJIA index has hit a recent high or difficulty in finding tradable stocks there is evidence to suggest that passive investment is taking over. Since 2007 the outflow of funds from actively managed funds has hit $1.2 trillion while fund inflows into index trackers and EFTs were more than $1.4 trillion over the period. So, are we seeing a more long term move towards passive investment or is this simply a short-term trend? Read full article
