(Harvest) Passive investing – replicating the market’s returns through low-cost index funds or exchange-traded funds (ETFs) – has finally gained a meaningful share of the market. However there are still many investors who attempt to beat the market by investing with higher-fee active investment managers or directly in individual securities. These investors should fully consider the difficulty of achieving a superior result through active investing, and be aware of the behavioral biases that might be driving them down that path even when their circumstances might make passive investing a better alternative.
Why Passive Investing Is an Excellent Default Choice – an Active Investor’s View
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