Just 13% of U.S. large-cap stock-picking funds beat benchmarks over decade.

Only 13% of actively managed US large-cap equity funds outperformed comparable passive funds during the decade through June, according to Morningstar data cited by the Wall Street Journal. This underperformance persisted over the 12 months ending June 30, with only 27% of active large-cap funds beating their passive alternatives. This trend has accelerated the shift of investor capital from actively managed mutual funds to lower-cost, more tax-efficient exchange-traded funds (ETFs), with passive US funds now holding almost twice as much money as active funds.