Share this page | Email | Contact Us

Special Report on

Active vs Index Investing

active vs index investing special research report Photo by
It’s a good idea for people to keep in mind that active management must, as a whole, do worse than passive management.  This is a mathematical certainty, because all stocks must be owned by someone.  There must be a loser for every winner, in every transaction.  Since active management incurs more costs than passive management, its certain that on average active management must do worse.  The results show this to be the case. Of course no investor likes to believe that he or she is average, or that he or she would pick average stocks or mutual funds.  Ironically, they’re right:  most investors end up with below average returns, ...
Closet Indexers vs. Stock Pickers – Truly Active Managers ...
The study identifies different types of fund managers and evaluates their success by comparing both Active Share and correlation to the index (“tracking error”): Low Active Share/Low Tracking Error : “Closet indexer”. These were the worst performers. Low Active Share/ High Tracking Error : “Sector bet”. These fund managers have many of the index holdings, but take big bets in sectors. These funds also underperformed with returns similar to “closet indexers”. High Active Share/Low Tracking Error : “Diversified stock picker”. They tend to have many holdings –but different ones than the index. They are often skilled stock pickers. ... market research, surveys and trends
Mutual Fund Investing: Index Funds vs Actively-Managed Funds
Almost all of the information you receive on this epic battle suggests that it will rage on for years with no apparent winner.  And, ironically, almost every financial writer who stages this event always comes down on the side of index funds .  They cite important considerations like tax efficiency and costs.  But the real conversation isn’t about the fund itself, but how you utilize them and where. Index funds are for the complacent, the investor who really trusts the ability of the index to do no trading throughout the year, sell the losers at the end of the year and buy the winners, and charge you next to nothing for ... market research, surveys and trends


Collected Quotes on Investing | Ross Asset Advisors
Most investors, both institutional and individual, will find that the best way to own common stocks is through an index fund that charges minimal fees Warren Buffett, 1996 Shareholder Letter Most of the mutual fund investments I have are index funds, approximately 75%. Charles Schwab, 2000 Despite volumes of research attesting to the meaninglessness of past returns, most investors (and personal finance magazines), seek tomorrow’s winners among yesterday’s. Forget it. The truth is, much as you wish you could know which funds will be hot, you can’t - and neither can the legions of advisers and publications that ... industry trends, business articles and survey research
Investing: Active vs. Passive Management - a knol by Michael Edesess
Investment managers manage the investments of pooled funds—such as mutual funds and similar vehicles like exchange-traded funds—or investment funds owned by institutions, such as pension funds or endowment funds, or separately-managed accounts for individuals, or hedge funds—which are like mutual funds but are subject to less-strict rules. Suppose you were asked which investment manager you would like, one who tries to beat the stock market average or one who is content just to equal it. What would you say? “It depends on the cost” is the best answer. Is it worth spending more than a minimal amount to try to beat the market? ... industry trends, business articles and survey research
How to select the right investment
You are looking at an investment for 10 years, which would be a long-term investment. The risk of investing in equities (stock market) would be lowered by the fact that you are investing monthly so you do not need to worry about market timing. Based on this, an equity investment would make sense. Investment analysts are saying at the moment that you can expect an average return of about 10% from the stock market -- but this could be higher if the economic recovery continues. So if you investment R1 000 a month for 10 years (I am leaving out the escalation because you did not stipulate the amount), you would expect to have ... market trends, news research and surveys resources
Annual BlackRock 401(k) Survey: Plan Participants Make Retirement Savings a ...
today announced that more than half of 401(k) retirement savings plan participants report that their plan has become more important to them since the financial crisis of 2008, up nearly 10 percentage points from last year. This is according to the results of a nationwide survey released by BlackRock, the world's largest asset manager. BlackRock's second annual Survey of 401(k) Participant Attitudes and Behaviors also indicates that employers have a significant opportunity now to improve the effectiveness of their defined contribution (DC) plan by focusing ... market trends, news research and surveys resources


FOR DEALER USE ONLY. Features. • Performance. • Volatility. • Trust. • Cost / Benefit. S Benefits. S Although actively managed funds may do better or worse ... technology research, surveys study and trend statistics
PERSI Choice Plan Investment Policy :. Public Employee Retirement ...
The Public Employee Retirement System of Idaho (PERSI) sponsors the PERSI Choice 401(k) Plan (the "Choice Plan" or "Plan") for the benefit of its members. The Plan is a self-directed defined contribution (DC) plan consisting of a gain-sharing component under section 414(k) of the Internal Revenue Code, and a 401(k) plan designed to receive voluntary employee contributions, rollovers, and employer contributions. The Plan provisions are outlined in Idaho Code § 59-1308, PERSI Rules and the Plan Document for the 401(k) plan. The Plan is specifically designed in connection with the primary retirement benefit provided to ... technology research, surveys study and trend statistics
"Today's fad is index funds that track the Standard and Poor's 500. True, the average soundly beat most stock funds over the past decade. But is this an eternal truth or a transitory one?" "In small stocks, especially, you're probably better off with an active manager than buying the market." "The case for passive management rests only on complex and unrealistic theories of equilibrium in capital markets." "Any graduate of the ___ Business School should be able to beat an index fund over the course of a market cycle." Statements such as these are made with alarming frequency ...
Fast Answers: Investing, More on Investing, Strategies and ...
If you use a passive investment strategy, you focus on a mix of broad asset classes, such as domestic growth stocks, bonds, foreign stocks and cash -- not on individual stocks. You mostly trade to rebalance your allocation, not to buy and sell within an asset class. If you subscribe to an active investment strategy, you focus on stock picking and market timing. You’re more interested in trading than a buying and holding. Both strategies have advantages. You’ll pay a lot less in transaction costs with the passive strategy, and you can put off paying capital gains tax until you sell. For the active strategy to be ...
Vanguard vs. ING accounts? - Yahoo! Answers
I'm looking to invest and am deciding between a short term ING savings account and a Vanguard IRA? I'm young and it's not crucial for me to gain access to this money any time soon. Has anyone had any good/bad experiences with either? I've heard that Vanguard is a bit riskier, but the rates are great. Any thoughts? You are not comparing apples to apples and the difference is significant. The ING account is a regular savings account, and it definitely pays a decent rate of interest, that is federally insured. In other words, you have immediate liquidity (access to your money) and you will ...