Yes, the core investment lineup includes a range of both active and passive funds.
The professionals who actively manage funds use market analysis, experience and judgment to seek out investment opportunities, aiming to outperform the market benchmark or index. These funds can be beneficial in certain asset classes where managers have the potential to deliver strong net of fee performance over various market cycles.
In contrast, passively managed index funds are constructed to match or track the components of the market index. Index funds provide a low-cost way of getting broad market exposure. Passively managed funds are utilized in highly efficient asset classes where it may be difficult for managers to consistently add value, net of fees. Certain segments of the market, such as U.S. large cap equities, tend to be more efficient and have produced a lower probability of generating excess returns when compared to less efficient areas such as small- and mid-cap styles.