(Harvest) Just as performance among financial advisors and active mutual fund managers varies, it also varies among robo advisors, which typically use passive products. Ultimately, good risk-adjusted returns don’t simply depend on low investment fees, but sensible portfolio allocation and management over market cycles.
Investors should understand how passive products work, especially ETFs, and how successful active managers succeed. Thornburg’s new whitepaper explores the latest academic research on active vs. passive management.
