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Why active funds underperform even when the manager picks well
The managers running the biggest active funds picked stocks that beat the market in 2025 — and most still lagged their benchmark. A Morningstar do-nothing experiment and a body of academic research explain why active funds underperform even when the picking is good: skilled buying undone by poor selling, the hidden cost of trading, and the incentives that keep managers churning. The UK evidence points the same way.

Robin Powell
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Portfolio insurance: the crash protection that rarely pays out
Buying put options to insure a portfolio against a market crash feels like the prudent thing to do. But new research covering more than two centuries of market history finds that portfolio insurance loses money over time — and that it fails in exactly the slow, grinding bear markets that do investors the most harm. People insure almost everything they value. Homes, cars, phones, even pets: paying a modest premium to guard against a loss you would rather not face is one of the

Robin Powell
Jul 107 min read


Buffer ETFs: protection, illusion or expensive reassurance?
Buffer ETFs are designed to limit stock market losses over a set period, usually in exchange for capping potential gains. Now becoming available to UK investors, these downside protection ETFs use options to cushion falls in markets such as the S&P five hundred. This article explains how buffer ETFs work, what they cost, and whether the trade-offs are worth it for long-term investors.

Robin Powell
Jan 145 min read


Do active funds in downturns really protect you? What 26 years of data reveals
Active fund managers claim they earn their fees when markets fall. New Morningstar research spanning 26 years tests this claim. The findings: active funds in downturns do outperform more often, but markets rise 80% of the time, swamping any advantage. When COVID and 2022 stress-tested the theory, most active managers failed to protect investors. The promised shelter turns out to be little more than a coin flip.

Robin Powell
Nov 10, 20257 min read
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