Arguing that the shift to passive investing is “really just a reflection of an even bigger move away from high-cost to low-cost funds,” a recent Bloomberg article suggests that active…
Tag: active vs. passive
Ritholtz on the Challenges of Active Investing
In a Bloomberg article from earlier this month, columnist Barry Ritholtz outlines some of the benefits and challenges inherent in active investing. He cites the following “desirable goals” and some…
Research to Help Choose Between Active or Passive Investing
A new research paper by Vanguard provides a framework for the decision between active and passive investing, according to an article on the company’s website. The paper intends to help…
Indexing Beats Smart-Beta Track Record
Many smart-beta funds– which develop portfolios focusing on various factors such as low volatility, value, or momentum– have underperformed the market, especially after accounting for fees and expenses. This according…
Warning to Index Fund Investors
The more investors index, the higher the costs for those that don’t, according to a recent MarketWatch article. The benefit of indexing–lower costs and higher long-term returns—only exists, the article argues,…
Study Finds that Stock Picking Probably Won't Make Investors Rich
While some stock pickers can successful, investors should keep in mind that the odds are against them, according to a recent article inThe New York Times. “It’s not just that…
Fool's Gardner on Active Versus Passive Investing
In a recent interview with WealthTrack’s Consuelo Mack, Motley Fool’s Tom Gardner shares insights regarding active versus passive investing and where he sees market opportunities. Tom Gardner, who’s mission through…
The Math of Stock Picking Works Against Active Managers
The concentration of gains in a minority of index fund holdings—a statistical concept called positive skew—makes it extremely difficult for active managers to beat benchmarks, according to a recent Bloomberg article. Research…
Is It Time for Active Managers to Shine?
“Passive funds tend to attract more inflows after the underlying indexes have performed well, so they’re driven by momentum rather than by analysis of company valuations and fundamentals,” according to…
Active Management Versus Passive Investing: How to Choose
Active management fees, coupled with periods of underperformance, have made low-cost index investing attractive for investors, writes Validea CEO John Reese in a recent article for The Globe and Mail.…