Market chaos gives skilled managers a chance to beat index funds — just like they’re supposed to do

The opinion piece argues that recent market volatility, driven by geopolitical (Iran) shocks and policy uncertainty, plus large sector return divergence and heavy mega-cap concentration, increases the value of active equity managers versus passive index funds. Five tech giants (Nvidia, Apple, Alphabet, Microsoft, Amazon) account for roughly 25% of the S&P 500, leaving many index investors overexposed to a handful of names. The authors cite research finding that managers who tactically shift factor exposures can outperform by nearly 2% annually following quarters with large repositioning. The article recommends that individual investors consider allocating part of portfolios to skilled active managers who can rotate sectors and reduce concentration risk, while acknowledging academic evidence that most active managers underperform after fees.