Global passive equity funds' net assets surpassed those of their active counterparts for the first time in 2023 as investors increasingly sought lower-cost funds that mirror broad market indices. According to LSEG Lipper, global passive equity funds' net assets stood at a record $15.1 trillion at the end of December while those of active funds was $14.3 trillion. Passive funds, often associated with stable, large-cap stocks with strong fundamentals and lower volatility, have grown in popularity since the 2008 financial crisis as investors sought safety in periods of uncertainty.