PODCAST | Is too many investment options a bad thing?

Dealing with a large number of investment products and options in the financial market is the focus of this edition of Business Day Spotlight.

Host Mudiwa Gavaza is joined by Daniel dos Passos, senior portfolio manager at FNB ETFs.

A big part of the discussion centres on the realities of investing in a market that appears to have too many options.

Listen to the discussion:

Dos Passos talks about how an overwhelming number of choices — whether ETFs, AMETFs or active versus passive strategies — can lead to hesitation, dissatisfaction, or even inaction.

Highlighting the paradox of choice when it comes to investing, he explains how experienced investors manage this overload and why sometimes settling for “good enough” is the best move.

Within this context, the investment expert highlights the place of active versus passive investment.

ETFs and other passive forms of investing have gained in popularity in recent decades. Popularised by US fund manager Vanguard, founded by businessman John C Bogle, ETFs are a type of security that can track an index, sector, commodity or other assets. These securities can be bought and sold on the stock exchange like any other stock.

Topics of discussion include the paradox of choice in investments; active versus passive investment; impact on retail versus professional investors; FNB’s use of passive products; the state of the market, and an outlook for the sector.

Business Day Spotlight is a MultimediaLIVE Production.