Compare process, cost, tracking, manager dependence and portfolio role.
Active and passive approaches solve different implementation problems. Active management introduces manager/process selection risk but can deviate from a benchmark in pursuit of excess return. Passive management seeks benchmark exposure and usually reduces security-selection discretion.
The decision should consider the role of the allocation, the investor's preference for benchmark certainty, costs, liquidity, manager/process evidence and the risk of style drift.
Avoid deciding solely from the last year's performance.