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.
New research suggests that trading in retirement increases after people stop working — and that the extra activity quietly erodes returns. Here's what the evidence shows, and why having more time isn't the advantage most investors assume.
Trump trades—betting on presidential policies — seem obvious. Reality? Investors who bet against Trump taking action earned S&P 500 returns. Believers lost 20%.
Robin Powell
Oct 24, 202512 min read
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