By Renee Eagar*
If you are a disciplined investor the way your money is invested matters. And the strategies that helped it grow in the past might not work as well in the future. That’s not a guess; it’s what the latest research shows.
For the past 20 years, markets – especially in the US – tracker funds know as passive investment strategies have delivered strong returns. Many retirement funds tracked those markets using low-cost investments called ETFs. These funds simply follow the index, and for a long time, it has been a winning strategy.
The rapid rise of passive funds
The influx into this strategy particularly in the US has resulted in ETFs holding nearly $12 trillion. That’s about a quarter of their entire investment market. Even in South Africa, passive investing is growing quickly. A few years ago, it made up only a tiny slice of the local market. Today, it’s around 9%. Chances are, some of your money is already invested this way.
That approach worked well in a world where a handful of tech companies drove most of the market’s growth. But markets are changing. The same indices that performed so well are now more concentrated than ever.
Looking ahead, those big-name shares are expected to deliver much lower returns. The outlook for US equities over the next 10 years is significantly weaker than in the past decade.
The are signs are evident that returns will come from a broader mix of asset classes – emerging markets, bonds, credit, and more. This shift means simply tracking a big index may no longer be enough to grow your wealth the way you need to.
Time for a rethink?
You’re not the only one rethinking things. After years of investors pulling money out of actively managed funds, that trend is slowing down. In fact, we may soon see money flowing into active strategies again. Some of it is already moving, but it’s harder to spot, because many of these flows go into active ETFs.
These are counted as passive on paper, but the strategies underneath are anything but.
That’s why active investing is back in focus. Unlike passive funds, active managers make choices. They don’t just follow the index – they decide which shares, asset classes, sectors, or regions to invest in.
That flexibility can help them avoid overvalued companies and find better opportunities elsewhere. Especially when returns are no longer concentrated in just a few stocks, this kind of selective approach matters.
Paving a new way forward
According to Investopedia, many active funds have underperformed their benchmarks over the past decade. That’s true, and it’s one reason passive investing gained such a loyal following. But that was then. The investing environment is different now, and it’s changing fast.
What worked before might not work going forward. That’s why paying attention today can help you avoid surprises later.
Of course, no active manager has consistently beaten the index in recent years. That’s a fact. But the point isn’t to beat the market every year. It’s to give your savings a smoother, more resilient ride – and to adjust when markets change.
That’s why many people are moving toward a combined approach. Using passive funds for broader exposure keeps costs down. Adding some active strategies helps capture opportunities and manage risk when the market environment gets tougher.
Active ETFs offer a new middle ground: low-cost, but with the ability to respond and adapt.
So, what should you do? Start by reviewing where your money is invested. If most of it is in passive funds, it might be time to rethink whether that’s enough.
The key is not to stand still; there is a greater need to reconsider all the options. The investing world is shifting and faster than we can keep up with. Small changes to your strategy today could make a big difference to your wealth over time and particularly over the longer term.
*Renee Eagar, Certified Financial Planner®, is head of Brenthurst Wealth Claremont, Cape Town
Megan joined the Brenthurst Wealth team in March 2026 as an Administrative and Fiduciary Services Assistant at our Val de Vie Office in the Western Cape. Prior to joining Brenthurst, Megan gained three years of experience in the retail sector, where she developed management and client service skills.
I obtained my National Diploma in Financial Information Systems from the Cape Peninsula University of Technology in 1999 and have worked in the wealth management industry since January 2000. Over the years, I have gained extensive experience in various roles, including Portfolio Manager Assistant, Planner Assistant, and Paraplanner.
Esmarelda Isaacs-Andreas joined the Brenthurst Wealth Stellenbosch office in October 2025, taking on the dual role of Receptionist and Fiduciary Administrator.
I obtained my National Diploma in Financial Information Systems from the Cape Peninsula University of Technology in 1999 and have worked in the wealth management industry since January 2000. Over the years, I have gained extensive experience in various roles, including Portfolio Manager Assistant, Planner Assistant, and Paraplanner.
Ashley joined Brenthurst Wealth in January 2025 as Office Administrative Assistant and Receptionist for the Stellenbosch Office.
René Heystek joined Brenthurst Wealth in November 2023, as receptionist and administrative assistant in the newly established George/Garden Route office.
Michelle Heystek has built a career in the financial services over the last two decades, after obtaining her B.Com degree in Financial Management in 2005. Once she joined Brenthurst in 2006, she continued her academic journey, obtaining her Certificate in Wealth Management from INSETA in 2007, followed by a Postgraduate Diploma in Financial Planning from the University of the Free State. In 2008, she earned the Certified Financial Planner (CFP®) designation.
Anelle joined Brenthurst Wealth as a Receptionist and Administrative Assistant to Brian Butchart in the Cape Town office in December 2023. She has a wealth of knowledge from working as a liaison between Financial Advisers and clients at TMA and Absa Investment Management Services (Aims) since 1998. She obtained her B. com degree from the University of Port Elizabeth in 1997.
ADMITTED ATTORNEY | FINANCIAL PLANNER & HEAD OF BRENTHURST FOURWAYS
Sanet was appointed in April 2020, joining our Cape Town team as an Executive Administration Assistant to Renee Eagar. She has been in the financial services industry since 1990. Her previous experience includes positions at Sanlam, BJM and ABSA. She spent her last 12 years working at Alexander Forbes Private Client Wealth as a Senior Wealth Management Assistant. She has received numerous accolades over the years which include but not limited to, Alexander Forbes Client Service Excellence – Silver award in 2014,2015 and 2017. Sanet has also obtained her Certificate in Wealth Management (NQF 5) in 2012 and achieved “Best Student of the Year” from Moonstone.
Maria Smit is a Certified Financial Planner® with over 10 years of experience in the financial planning industry.
