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Do Investors Use Index Funds Wisely?

Dollar-weighted returns suggest investors use passive funds more effectively than active funds--but a number of caveats footnote that conclusion, says Morningstar’s Ben Johnson.

Christine Benz: Hi, I'm Christine Benz for Morningstar.com. Do investors in passive mutual funds take home a greater share of their funds' returns than investors in active mutual funds? Joining me to discuss that question is Ben Johnson. He is director of global ETF research with Morningstar.