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It's good that you highlight this. The problem is likely to get worse unfortunately. The percentage of total AUM in active mutual funds dropped to 46% as of September 2021, but if the current trend continues it will drop to 17% by 2035, and the active management industry will disappear altogether by 2050. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4539706

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Pretty wild. Although I would think that at some point in these next 25 years there will be some market/global events that lead to active investors having the upper hand for a moment.

However, whether it will be enough to disrupt the larger trend is the question. I'll be sure to check out that paper. Thanks.

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