Here’s one area of the market where active is beating passive

As billions of dollars continue to pour into exchange-traded funds and other passive strategies, making life tough for active investors needing to beat the market, there is one cohort that’s outperforming everyone: small and mid-cap fund managers.

Fresh analysis from Morningstar shows that in the Australian small and mid-cap sector, active managers have outperformed passive strategies by 1.8 percentage points over three years, 2.2 percentage points over five years and 3.3 percentage points for the decade.

Source: https://www.afr.com/markets/equity-markets/here-s-one-area-of-the-market-where-active-is-beating-passive-20251111-p5n9c1