After all, Vanguard is to index fund investing what Fidelity is to active fund investing.
The truth is that a majority of active fund managers performed badly in bad markets and good markets.
For decades they used their bargaining power to force down the fees they paid to conventional, active fund managers.
Others advise selling an active fund for an index fund or vice versa.
Or said slightly differently, the higher the fees the higher the performance hurdle for an active fund versus a passive vehicle.
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Amihud uses a statistical measure called "R-squared" to observe how much of active fund managers' returns can be explained simply by the index.
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Past winning active fund managers find it extremely difficult to stay just in the top-half of their peer group for any period of time.
Of course the big question for many active fund managers, especially those focused on equities, is whether or not they can put up with the transparancy that ETFs must provide investors.
Active fund managers are getting better at managing volatility.
This method outperforms active fund selection by over one percent per year, and a disciplined rebalancing strategy generates returns that have outperformed the markets nominally and on a risk adjusted basis.
Since a portfolio consists of multiple mutual funds, a portfolio of actively managed funds should be benchmarked to a portfolio of comparable index funds to determine if active fund management is working or hurting.
Fama admits there is evidence of skill with a handful of active fund managers, but the odds of picking the right mix of managers are as difficult as finding a needle in a haystack.
During bull markets, the Active Bear fund seeks stocks it believes will underperform.
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Hsia has been an active Democratic fund-raiser since the late 1980's when she headed the Los Angeles-based Pacific Leadership Council, a group of Asian-American contributors.
The active versus index fund debate raged on during 2012 as more investors shifted their portfolios to passive strategies.
Government must be active enough to fund services for the poor and humble enough to let good people in local communities provide those services.
According to the ETF Finder at ETF Channel, COP makes up 6.34% of the Active Mega Cap Fund ETF ( AMEX: PMA) which is trading higher by about 4.6% on the day Thursday.
According to the ETF Finder at ETF Channel, DFS and APC collectively make up 2.06% of the Active Mega Cap Fund ETF (PMA) which is trading lower by about 0.2% on the day Tuesday.
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Trading, by its nature, is active management and index fund managers did a lot of trading just to stay in the game.
The growth in fixed-income ETF investing is expected to continue as more investors and advisors convert from active management to index fund investing.
Though I will wonder which hedge fund is active, or if automated programs have kicked in, it will not influence my fundamental outlook on the markets.
Packed with data from dozens of academic studies, this book shows the hard facts about the failure of active management and the fund companies who profit from it despite the chronic underperformance.
Higher costs are always incurred with active management, whether the fund outperforms its benchmark or not.
In contrast, an active strategy exists when a fund manager knowingly and willingly attempts to beat a pre-designated benchmark.
There is always debate among investors as to whether style investing using index funds or a style-based asset class fund is an active management strategy or a passive one.
As a resident of the state who has worked for Florida municipalities, my conclusion was that there are numerous red flags that suggest the fund may be assuming unacceptable risks to the active and retired state government employees and taxpayers who collectively fund the system.
While the private-equity fund previously had been active in offering junior debt to borrowers, the acquisition gave it a platform to make mortgages.
For slow moving active money managers in the mutual fund industry, they were just no match for the red bulls of the exchange traded fund world.
This would allow traders and active investors to begin trading the fund from the long side for a change, taking advantage of short-term weakness rather than short-term strength as the bull market in FXI is restored.
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