Daily Fintech Conversations

Are low cost, actively managed funds; the next obsession?

In a recent post, I covered PTFs (platform traded funds) and initiated coverage of the “low cost, active funds” space.
Some of the names already invloved are Ark Invest, Aequitas Technology Solutions, Invesco, Eaton Vance, and UBS Asset mgt.

Should we watch closer now that Vanguard seems to be stepping into this space too?

Should we expect that passive investing will accelerate and dominate?

“The portion of the S&P 500 owned by passive mutual funds and ETFs has more than doubled since 2005, from 4.6% to 11.6% today.”

The Wall Street journal says it nicely: " Is it really true that the best choice is to abdicate choice?"
Check out the WSJ series “The passivists”.

I think passive ETFs are useful for investors who don’t have the time and/or desire to manage their portfolio actively, especially if their strategy is a long-term total return approach, but I personally prefer a DIY perspective. I’m seeking alpha :slight_smile: