Active versus passive heat map

Sources: © 2022 – Morningstar Direct, All Rights Reserved1, and Wells Fargo Investment Institute, as of September 30, 2022. REITs = real estate investment trusts. MLPs = Master Limited Partnerships. Past performance is no guarantee of future results. An index is unmanaged and not available for direct investment. Morningstar developed the Morningstar Categories. While the prospectus objective identifies a fund’s investment goals based on the wording in the fund prospectus, the Morningstar Category identifies funds based on their actual investment styles as measured by their underlying portfolio holdings. See “Index Definitions and Asset Class Risk Disclosures” link above for the definitions of the indexes and the Morningstar Categories. Shading represents a heat map, ranging from the highest value in the darkest green to the lowest value in the darkest red.

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Key Takeaways

  • It was a mixed quarter for active equity funds beating their indexes. Large cap value funds had higher rates of success, while most growth and core categories struggled to beat their indexes. Emerging market funds had the highest rates of success.
  • Active fixed income managers also had mixed success. Investment-grade bond funds and high-yield funds did well, while U.S. government and municipal bond funds generally struggled to beat their indexes.