Research Article
A Comparative Study on the Returns of Active Funds Versus Passive Funds A Quantitative Research Based on Financial Market Data
@INPROCEEDINGS{10.4108/eai.17-6-2022.2322650, author={Yi Sheng}, title={A Comparative Study on the Returns of Active Funds Versus Passive Funds A Quantitative Research Based on Financial Market Data}, proceedings={Proceedings of the International Conference on Information Economy, Data Modeling and Cloud Computing, ICIDC 2022, 17-19 June 2022, Qingdao, China}, publisher={EAI}, proceedings_a={ICIDC}, year={2022}, month={10}, keywords={comparative study; active funds; passive funds; financial returns china market us market}, doi={10.4108/eai.17-6-2022.2322650} }- Yi Sheng
Year: 2022
A Comparative Study on the Returns of Active Funds Versus Passive Funds A Quantitative Research Based on Financial Market Data
ICIDC
EAI
DOI: 10.4108/eai.17-6-2022.2322650
Abstract
No matter in the investment industry or the financial community, there has been a heated discussion on the returns of active funds and passive funds for decades. The rapid development in the field of finance coupled with diverse mushrooming financial derivatives is entailing the financial markets with both benefits and risks. This paper aims to present a comparative study on the performance of active funds and passive funds, and provide further evidence for financial economists and broad investors to make sound decisions. Apart from the qualitative method, such as academic review and industry research, this paper also retrieved data from financial databases, such as Morningstar and Yahoo Finance, and calculated the average returns of active and passive returns to conduct quantitative analysis in both China and the U.S. market. Through the comparison of performance in different countries and time intervals, this paper seeks to better understand these two forms of fund strategies and to offer insights to cope with potential risks and future opportunities.