Are You Using More Actively Managed Funds or More Passive Index Funds now Compared to a Year Ago?

Hayden, Vern C.; Weil, Jim; Meade, Shawn; Sullivan, John
June 2009
Journal of Financial Planning;Jun2009 Trends in Investing, p22
Academic Journal
The article presents perspectives from several financial planners on the use of actively managed funds versus passive index funds in the U.S. One of the advisors reveals that his company is using more passive funds than actively managed funds because of the limitations inherent in actively managed funds. Two of the consultants discuss the reasons why they do not use index funds and these include the volatility of these funds, their failure to outperform their index, and the way individual securities in an index fund is selected.


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