4 ms·

The anti-index fund craze is absurd considering there is nothing preventing an "actively" managed fund from behaving like a passive fund.

• nostrademons 11y ago
  Many of them do, actually. When I had actively-managed funds the graph of their performance usually looked exactly like the graph of their benchmark, except minus a few basis points for fees.
  • seunosewa 11y ago
    Avoiding those fees is the whole point of index investing. If they can't beat the market, why pay more fees?
    • nostrademons 11y ago
      No argument. I shifted over to passive investing by the time I was about 3 years out of college. (I worked in financial software for the first 2 of those years, so holding actively managed funds gave me an added benefit of helping to understand what my industry looked like and how end-consumers experience all the complicated algorithm/decision products we were working on.)
    • pbreit 11y ago
      "Active" managers are not required to charge high fees.