While passive target-date funds (TDFs) dominate the defined contribution (DC) retirement plan market, Cerulli suggests that touting advantages of active TDFs could make plan sponsors reconsider.
Within U.S. equities, the asset classes they see the most promise in are technology and small cap.
The SPIVA Scorecard of active fund managers produced by S&P Dow Jones Indices shows long-term underperformance of active managers, but Steve Deschenes, with Capital Group, takes issue with the active versus passive debate.
This is a cumulative average growth rate of 21% since 2005, when ETF assets were a mere $417 billion.