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04-15-2009, 03:13 PM
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Active vs. Passive Funds
Is it better to use an ETF (passive fund) or a Mutual Fund (active fund)? I found an article about FAMA and French over at wilshirewallstreet.com
It seems these guys from DFA are very passive guys! 
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04-15-2009, 03:53 PM
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note- you can find mutual funds which are passive and active
note 2- you can find ETFs which are passive and active passive investors discuss expense ratios and being able to predict future success off past results. Yet any investor is using past returns (10%+ historical returns for market over 20 and 30 year periods) to justify their actions to begin with. Find a strategy and stick with it. Active, passive, ETF, mutual fund- the charactoristic which decided return is risk taken- expenses are such a small portion of overall return some people let the expense tail wag the return dog. Returns are what matter, and the risks taken are what determine somewhere between 75-90% of the overall return.
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04-16-2009, 08:08 AM
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Here's a nice blog post illustrating why I use passive index funds:
Skill vs. Luck in Mutual Fund Performance
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