Passive investing in U.S. equities has attracted billions in capital over the past several years as investors have been enticed by its low fees, efficient structure and seemingly endless product choices. But investor fervor does not necessarily equate to a quality investment. In fact, it appears the U.S large cap equity market, as measured by the S&P 500 Ex-financials Index, has seen a deterioration in its fundamentals and credit quality over the past several years, yet its valuation sits at levels much higher than prior to the last recession. Investors may be unaware of the dangers that are presently embedded within the market and passive investment vehicles that, by definition, will be unable to pivot investors away from these risks. Active managers that focus on quality provide investors the ability to potentially mitigate some of these threats to their capital.