In the seemingly perpetual discussion about the underperformance of actively managed funds on a reward-to-volatility basis we are looking to answer the question: does passive funds outperform active funds in the Swedish market? With a sample period of ten years from January 2010 to December 2019 and a total of 40 funds including a U.S. sample set for reference, we provide research for an underexplored market. The use of previous research in fund investment is included to gain an insight into the difficulties of tracking and evaluating fund performance. To test our three hypotheses all funds are regressed using both the CAPM and Fama-French 3-Factor model in combination with Sharpe Ratios and an unpaired sample test.  Fund alphas were found to be in accordance with the efficient market hypothesis, but we do not reject a higher mean of Sharpe Ratios for passive funds in our sample when accounting for fees. Equality between the two markets in our sample can neither be rejected.