Active is: Looking for future winners
The stock-market dominance of industry sectors and regions changes over time
Through forward-looking analysis, active approaches seek to identify the businesses and sectors with the potential for future growth
At any point in time, a passive index may give the largest weightings to sectors that have already peaked
Passive investments track the world of yesterday
Weighting of sectors in the global equity market (Datastream index)
Source: Datastream (sector indices); Allianz Global Investors Capital Markets & Thematic Research. Data from January 1973-January 2017. The above chart is illustrative in nature and should not be considered a recommendation to purchase or sell any financial instrument. Past performance is no guarantee of future results.