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passive management

Passive Investing Comes with Valuation Risks

Passive Investing Comes with Valuation Risks

Podcast Passive, index-based investing has grown in popularity during the U.S. stock market’s post-Great Recession runup. Despite its recent success, however, passive investing is far from risk free. Built-in momentum bias increases an index’s exposure...
Emerging Markets: Active Oversight May Have an Edge

Emerging Markets: Active Oversight May Have an Edge

Adding emerging markets (EM) to a portfolio has its benefits: the potential for high growth as well as adding balance by including investments from up-and-coming economies around the world. But emerging markets investments also...
Evolving the Active vs. Passive Debate

Evolving the Active vs. Passive Debate

The active versus passive debate is again in the spotlight as investors shift assets from active strategies to passive exchange-traded funds (ETFs) and products that replicate an index. This reflects the fact that the...
Active or Passive Funds - Who Wins?

Active or Passive Funds – Who Wins?

A passive (index) mutual fund closely follows an index, such as the S&P 500® Index, without much variation in underlying investments. In an active fund, portfolio managers carefully choose potential investments based on research...
Breaking Down Passive and Active Investing

Breaking Down Passive and Active Investing

As a consumer, you want to feel confident in the choices you make. When it comes to investing, it’s important to understand your options. Investing, like other technical industries, has no shortfall of jargon...
Beyond Labels: Issues in Target-Date Fund Evaluation and Selection

Issues in Target-Date Fund Evaluation and Selection

The investment community has made significant strides in understanding and evaluating target-date fund (TDF)1 strategies over the past decade. Now, however, we have reached a plateau in target-date communication characterized by overly-simplistic dichotomies, such as...