Is the S&P 500 the Next Bubble?
One of the most well-established findings in the body of scholarly research on Mutual Fund Performance is that actively managed funds have typically underperformed passively managed funds on a net-of-fees basis. Investors’ realization of this has spurred a trend toward index fund investing over the past 20 years. Currently, more mutual fund assets track the S&P 500® than any other index. Figure 1 below illustrates the trend towards index fund investing and the preponderance of the S&P 500®.
Nanigian, David, "Is the S&P 500 the Next Bubble?" (2011). Faculty Publications. 98.