Overall, actively managed mutual funds and exchange-traded funds fell short of passive funds, with 47% of active strategies surviving and beating their index-following peers, according to Morningstar.
However, actively managed funds outperformed in the bond category.
About 53% of active bond managers survived and beat the passive average in 2023, up from 30% in 2022, the research firm said in a recent report .
Intermediate core bond funds largely invest in investment-grade debt, spanning from government issues to corporates.
Core bond funds have also held up in recessions, thanks to their diversification across fixed income and duration.
Persons:
Morningstar, Paul Olmsted, Olmsted, Olmstead, It's
Organizations:
Morningstar, Vanguard, Bond Market, Aggregate Bond, Intermediate Bond Fund