Investors have pulled a record $450bn out of actively managed stock funds this year, favoring cheaper index-tracking investments and causing a shift in the asset management industry. The exodus from active strategies is driven by older investors cashing out and younger savers opting for passive strategies, leading to underperformance for traditional stockpicking funds. ETFs have seen significant inflows, with industry assets increasing by 30% to $15tn, prompting traditional mutual fund houses to repackage their active strategies as ETFs to attract the next generation of customers.
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3 Monster Stocks in the Making to Buy Right Now
Investors looking for potential "monster stocks" should consider the biotech sector, which offers promising early-stage companies. Three Motley Fool contributors highlight CRISPR Therapeutics (NASDAQ: CRSP), Summit Therapeutics (NASDAQ: SMMT), and Viking Therapeutics (NASDAQ: VKTX) as stocks with significant growth potential. Explain It To Me Like I'm 5: Some smart people think there are special companies that make medicine, called biotech stocks, and they believe that CRISPR Therapeutics, Summit Therapeutics, and Viking Therapeutics could become really...
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