Exactly. Active funds ask investors to accept 100% of the downside and get taxed on the upside. Actually it’s worse: they’re taxed on both the up and down side

Exactly. Active funds ask investors to accept 100% of the downside and get taxed on the upside. Actually it’s worse: they’re taxed on both the up and down sides. If this is a terrible deal for fund managers then virtually by definition actively-managed funds are a terrible deal for investors.