This article is part of Morningstar's Guide to Passive Investing special report.
U.S. investors have wholeheartedly embraced passive investing. Nearly $6.7 trillion rested in passive funds at the end of 2017. While actively managed U.S. equity funds saw $207 billion in outflows last year, passive U.S. equity funds raked in $220 billion in new money. Not to be outdone, passive taxable-bond and international-equity funds each also enjoyed inflows in excess of $200 billion last year. Clearly, indexing is no longer something investors do just for cheap U.S. equity exposure.