Active versus passive investment management was once a healthy theoretical debate in the world of financial academia. However, in recent years-- as the research pours in, we see that the fees, transaction costs and poor tax management by active managers simply present too many hurdles for active managers to clear and outperform. Year after year, active managers produce returns that, on average, underperform their benchmarks. As we lengthen our timeframe and look back over 10 or 15 years, active ... [Continue Reading]
Passive Index Funds
Articles and resources related to Passive Index Funds.
This week we’d like to recommend Charles Ellis’ interview with Consuelo Mack on wealthtrack.com. Charles Ellis has had a long and prestigious career in the investment management industry. In addition to founding and managing his consulting firm, Greenwich Associates, Mr. Ellis served as a trustee for the Yale Endowment, was on the board of directors for the Harvard Business School and worked as a director for the Vanguard Group. Mr. Ellis has authored several best-selling books throughout his ... [Continue Reading]
The first half of 2016 was quite a wild ride. Markets kicked off the year with their worst start in history. Then, after bottoming out on February 11 they rebounded strongly, with the S&P 500 rallying nearly 20% off the lows. This type of volatile market is what stock pickers and market timers dream about. The extreme highs and lows provide opportunities for opportunistic buying and selling--the perfect environment for the most competitive managers on Wall Street. As we review performance ... [Continue Reading]