There’s been a growing debate surrounding the rise in popularity of “passive investing” as an alternative to active management. Passive investing often refers to the use of ETFs or indexing strategies to mimic a certain benchmark – in short, it essentially allows the investor to simply ‘set and forget’ their investment strategy.
Here, we’ll take a look at potential flaws with the passive approach – flaws that many investors may not be considering. But first, it is worthwhile to examine why some investors are reconsidering the value of active management.
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