Most active U.S. equity mutual funds and exchange-traded funds outperformed their average passive counterparts over the year ended June 30, based on data provided by Morningstar. Nearly three-quarters of active U.S. small-cap funds that blended value and growth had returns ahead of the comparable average passive fund.
The portion of active funds besting passive funds generally declined over time. Large-cap funds had success percentages ranging from 9.8% to 12% across categories over 10 years. Over that span, 28.3% to 45.8% of small-cap funds topped the average passive fund.