Passive equity funds offered by major Nordic lenders are delivering superior returns compared to their actively managed counterparts, according to a new comparative analysis.
The findings reinforce a broader industry trend where low-cost index tracking is increasingly favored over high-fee active management.
The analysis, published by Finnish financial daily Talouselama, constructed model portfolios using equity funds from Nordea, OP, Danske Bank, and S-Pankki.
The study found that passively managed funds consistently outperformed active strategies across the four institutions.
This performance gap highlights the difficulty active managers face in generating alpha after fees in efficient Nordic equity markets.
This development follows similar findings from a recent analysis by Kauppalehti, which also reported that passive equity funds were delivering superior returns compared to actively managed portfolios across major Nordic banks.