Comment by dgb23

I think the almost opposite is the case.

Passive, (especially global) index funds doing so well and outperforming the vast majority of actively managed, general funds () is not a given, but they point to a different problem.

It means that most actively managed funds are still overpriced (fees), don't deliver efficient price discovery, and in some cases destabilize the market by making consistently wrong bets.

That's not the fault of index funds. In fact they make it easier for high performing investors who have deeper insights.

There are plenty of funds that don't compete on just on beating the index, but have other goals.