Active or Passive? Why You Should Use Both
Submitted by Optimal Advisor Solutions on August 14th, 2017
Optimal Capital's CIO Jay Batcha provides insights in Barron’s
Barron’s ETF Special Report
Active or Passive? Why You Should Use Both
For an optimal portfolio, you need both strategies. Here’s how to get the right mix.
By Reshma Kapadia
July 29, 2017
Active versus passive: The fund industry has been astir for quite some time over which is the better strategy for long-term investors. The debate has spawned side arguments, such as whether some passive funds are really active management in disguise, or whether the debate should be reframed along the lines of high-cost versus low-cost funds.
Here’s the good news: We aren’t going to rehash any of that here. The active/passive debate has misdirected the attention of many investors, and has led even financial advisors to think they must make an all-in decision on one or the other. So here’s more good news: You don’t. For an optimal portfolio, think in terms of active and passive.
