{"status":"ok","message-type":"work","message-version":"1.0.0","message":{"indexed":{"date-parts":[[2026,10,15]],"date-time":"2026-10-15T13:46:08Z","timestamp":1792071968713,"version":"4.4.0"},"posted":{"date-parts":[[2026]]},"group-title":"SSRN","reference-count":47,"publisher":"Elsevier BV","license":[{"start":{"date-parts":[[2026,1,1]],"date-time":"2026-01-01T00:00:00Z","timestamp":1767225600000},"content-version":"unspecified","delay-in-days":0,"URL":"https:\/\/www.uspto.gov\/ip-policy\/copyright-policy\/copyright-basics"}],"content-domain":{"domain":[],"crossmark-restriction":false},"short-container-title":[],"abstract":"<jats:p>This paper examines the economic implications of activeness in index funds in Japan. In recent years, the proliferation of niche indices, such as thematic and sector indices, has blurred the boundary between passive and active manage ment. Using a sample of 607 index mutual funds and ETFs over the period from 2005 to 2025, I investigate whether this \u201cactiveness of index funds\u201d cre ates value for investors. The results show that more active index funds charge higher fees, and that investors are less sensitive to fees when allocating capital to these funds. However, more active index funds substantially underperform. Taken together, these findings suggest that the activeness of index funds does not create additional value for investors, but instead primarily reflects a product differentiation strategy aimed at generating additional revenue.<\/jats:p>","DOI":"10.2139\/ssrn.7578303","type":"posted-content","created":{"date-parts":[[2026,10,7]],"date-time":"2026-10-07T18:45:00Z","timestamp":1791398700000},"source":"Crossref","is-referenced-by-count":0,"title":["Activeness in Passive Investing: Evidence from Japanese Index Funds"],"prefix":"10.2139","author":[{"ORCID":"https:\/\/orcid.org\/0009-0003-9571-0282","authenticated-orcid":true,"given":"Anju","family":"Anan","sequence":"first","affiliation":[],"role":[{"vocabulary":"crossref","role":"author"}]}],"member":"78","reference":[{"key":"ref1","doi-asserted-by":"crossref","first-page":"323","DOI":"10.1016\/j.finmar.2010.10.005","article-title":"Conventional mutual index funds versus exchangetraded funds","volume":"14","author":"A Agapova","year":"2011","journal-title":"Journal of Financial Markets"},{"key":"ref2","author":"P Akey","year":"2021","journal-title":"Closet active management of passive funds"},{"key":"ref3","doi-asserted-by":"crossref","first-page":"667","DOI":"10.1093\/rfs\/hhs182","article-title":"Mutual fund's r 2 as predictor of performance","volume":"26","author":"Y Amihud","year":"2013","journal-title":"The Review of Financial Studies"},{"key":"ref4","doi-asserted-by":"crossref","first-page":"407","DOI":"10.1016\/j.jfineco.2023.06.003","article-title":"Index providers: Whales behind the scenes of etfs","volume":"149","author":"Y An","year":"2023","journal-title":"Journal of Financial Economics"},{"key":"ref5","doi-asserted-by":"crossref","DOI":"10.1016\/j.pacfin.2026.103328","article-title":"Index fund quality is persistent, but investors underreact: Evidence from japan","volume":"100","author":"A Anan","year":"2026","journal-title":"Pacific-Basin Finance Journal"},{"key":"ref6","doi-asserted-by":"crossref","first-page":"2600","DOI":"10.1093\/rfs\/hhw054","article-title":"Which factors matter to investors? 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