Český finanční a účetní časopis 2025(1):44-65 | DOI: 10.18267/j.cfuc.608

Comparison of the performance of Czech actively managed funds with ETFs

Martina Sobková
Vysoká škola ekonomická v Praze, Fakulta financí a účetnictví, katedra
bankovnictví a pojišťovnictví, nám. W. Churchilla 4, 130 67 Praha 3

The article focuses on comparing the performance of domestic actively managed funds with ETFs, or Exchange Traded Funds, which are traded on stock exchanges and generally aim to track a selected index. It compares actively managed funds and ETFs from both a return and volatility perspective. Key indicators analyzed include average return, Sharpe ratio, Beta, Jensen's alpha, and Treynor ratio. The objective of this article is to conduct a detailed analysis and empirical evaluation of whether actively managed investment funds—managed by portfolio managers with the goal of achieving above-average returns—can outperform passively managed funds in the long run. These passive funds, such as index funds and ETFs, track the performance of a specific market or sector without active intervention from fund managers. The emphasis is placed on empirical observations, i.e., actual historical results, rather than theoretical considerations, to provide an objective assessment of whether active management delivers higher added value for investors compared to passive investing, which relies on long-term market growth.

Keywords: Active management; Passive management; ETF; Funds;Investments; Asset performance
JEL classification: C58, G11, G23

Received: March 14, 2025; Revised: March 14, 2025; Accepted: March 22, 2025; Published: July 21, 2025  Show citation

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Sobková, M. (2025). Comparison of the performance of Czech actively managed funds with ETFs. Czech Financial and Accounting Journal, 2025(1), 44-65. doi: 10.18267/j.cfuc.608
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