Active Flows and Passive Returns

Ariel Levy, Offer Lieberman

Research output: Contribution to journalArticlepeer-review

8 Scopus citations


The positive relationship between money flows into investment products and their return performance is an important market indicator for market practitioners and academics. This article studies the impact that active versus passive investment styles have on this relationship. We further evaluate the effects of a passive approach in two crucial stages: portfolio selection and asset allocation. We find that a passive investment style in either stage weakens the relationship between flows and returns compared with an active style. However, the investment style in the asset allocation stage has a greater effect than in the portfolio selection stage, on the relationship between flows and returns.

Original languageEnglish
Pages (from-to)373-401
Number of pages29
JournalReview of Finance
Issue number1
StatePublished - 1 Mar 2016
Externally publishedYes

ASJC Scopus subject areas

  • Accounting
  • Finance
  • Economics and Econometrics


Dive into the research topics of 'Active Flows and Passive Returns'. Together they form a unique fingerprint.

Cite this