COMPANY COMMENT
Low-hanging fruit: active versus passive
It’s not just low returns that has retail clients questioning active asset managers – it’s costs
22 February 2021 - 20:15
Proponents of passive investing, which favours index-tracking solutions like exchange-traded funds (ETFs), argue that there is ample evidence that active managers cannot consistently beat the market over time.
On the other hand, active asset managers contend that passive strategies, which purchase shares in proportion to their index weighting, are being inflated by the dominance of large technology stocks that account for a disproportionate chunk of the particular index...
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