Israel has over 100 active funds operating throughout the country with $10 billion under management.
Managers of active funds have more discretion, he said, and some foreign stocks are relatively illiquid.
She has more than 200 employees running more than 50 active funds.
Picking the right active fund at the moment is a nightmare.
The active fund managers' argument would be sound if it were not for one point: many of them consistently fail to add value.
And this has leveled the playing field between active and index funds, she said.
For any one year, that is only a small difference, which is why in some years, like 1999, the majority of active funds beat the indexes.
It is too early to tell how active or index funds have weathered the current bear market, he said.
This difference alone might have been expected to result in an advantage of 0.2 percentage point for the active funds.
But it failed to matter, presumably because the active funds hold more volatile stocks.