Passive funds own all the poor performing equities Copy

This is true but it is only half the picture, because passive funds also own all the high performing shares. 

The question to ask is what is the range of potential performance? The answer, the poorest performing share can only ever fall by 100% to zero, but the upside performance for all shares is unlimited.  In effect, for a passive portfolio to do well, you just need a few big winners to make up for the losers.  More fundamentally from an economics perspective, over time stock markets will always grow and outperform interest rate assets and the inflation rate, and interest rate assets will always outperform inflation.  That means participating in these markets over time makes the yield predictable. What is less predictable is which active asset managers to choose successfully and consistently.    

What is unavoidable however, is that to earn a market return, investors have to be invested one way or the other in that market.