I have six observations detailed below that help guide my approach to the active vs. passive question. Active analysis hinges on reasonable forecasts of ex-ante alpha and active risk both in terms of ...
When you're thinking about active vs. passive investing, it's important to realize that there are benefits to each. Active investing requires someone to actively manage a fund or account, while ...
One Word, Two Meanings Everybody knows that there are active funds, and there are passive funds. Those are the terms used across the industry--by investment consultants, financial advisors, the media, ...
Historically, most exchange traded funds (ETFs) have been passive. But that’s starting to change, with more and more active ETFs coming to market. The growth in active ETFs is largely the result of ...
There has been a lot of debate over whether active funds or passive funds are "better," but the answer is that they can serve different purposes. Investors care most about which type performs better, ...
What’s better—active or passive management? Both keep capital markets orderly. Ever since index funds—also known as passive investments--have existed, there has been an endless debate about their ...
Conflict tends to be the norm in discussions about active and passive investing approaches, but it shouldn't be. While a March 2019 article in The Wall Street Journal reinforces the idea that "few ...
Chances are, if you put a group of Bogleheads in a room with a bunch of fund managers, it’s likely nobody will completely agree on the best investing approach. If you casually toss the active vs.
Investing isn’t a one-size-fits-all endeavor. You can choose the types of investments you want to hold and how you’d like to manage your portfolio. One significant decision you’ll need to make is ...