The following article by Larry Swedroe is very educational regarding the difference between active and passive investing.
In the past, we have looked at the performance of such active managers as AllianceBernstein, Muhlenkamp, Northern Trust and Waddell & Reed. I was asked to take a look at Fidelity and see if its active funds had added value. When first asked, I thought “Sure, we can do that.” But the task became a bit more daunting when I learned that Fidelity has more than 1,000 active funds and more than $1 trillion in assets under management.
To whittle the list down to a manageable number, I asked my Right Financial Plan co-author Kevin Grogan to screen for the 10 largest actively managed equity funds with at least 10 years of history. I only included funds that have a Dimensional Fund Advisors and Vanguard equity counterpart, so funds that mix US and international equities or have significant allocations to fixed income were excluded.