Active equity funds experienced a massive $1 trillion outflow in 2025, marking the 11th consecutive year of withdrawals. This trend coincides with the dominance of seven major U.S. tech stocks, which significantly contributed to the S&P 500's gains. As a result, passive ETFs attracted $600 billion in inflows, according to on-chain data. The Investment Company Institute and Bloomberg report that over 73% of U.S. equity funds underperformed their benchmarks, highlighting the challenges faced by active strategies. The superior performance of AI-driven tech stocks further exacerbated the difficulties for active fund managers.