To date, Index Strategy Maps have been adopted by two companies, Morningstar, Inc. and ETFguide.com.
He sees an advantage to this planned ETF in that investors who are used to passive ETFs will now be able to use this active ETF rather than having to constantly move money from one passive index strategy to another.
In addition, active strategies are always more complex than a passive index fund strategy.
Investing in actively-managed mutual funds that charge high fees can lower your standard of living in retirement by as much as one-third over a low-cost index fund strategy.
Traditional mutual funds tend to be actively managed, while ETFs adhere to a passive index-tracking strategy, and therefore have lower expense ratios.
My strategy included mostly index funds and ETFs in a diversified portfolio for clients based on their long-term needs.
Those that bought emerging markets did poorly unless they found a savvy manager with a bottom up strategy that beat the index.
Investors should weigh the risks embedded in alternative indexes as well as the higher cost of these index funds and ETFs before buying into the strategy.
In our non-seasonal Market-Timing Strategy we use sector funds as well as index funds, avoiding individual stocks.
Huntington may use assets from its Rotating Index Fund to seed the launch of Huntington Global Rotating Strategy, a new ETF.
No matter how much you like a stock or index, one of the central rules of my trading strategy is to never chase.
If active management were a viable investment strategy, it should reliably outperform a purely passive index.
FORBES: Playing With Active Money Managment Is A Losing Game
The proliferation of low-cost index funds that track various asset classes makes the implementation of this strategy easy.
Despite some firms raising larger and larger funds, Index has kept its fund size the same, opting to keep to its strategy of finding the best early-stage startups.
FORBES: Index Ventures Raises $442 Million Sixth Early Stage Fund
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.
Traders were using a new kind of hedging strategy called portfolio insurance, which involved linking stock prices to the futures index.
That strategy is fine, but these investments typically have much higher fees than index funds, which buy all the stocks or bonds of a particular index and hold onto them.
Since July 24, 2012, the last day of trading before we announced our updated strategy, Hess shares have increased approximately 34% versus 13% for our peer index.
This strategy can also be expanded to international investing by adding a small-cap international value index and real estate fund to a broad international index fund.
Nevertheless, some academic studies of the Big Mac index have concluded that betting on the most undervalued of the main currencies each year is a profitable strategy.
The reasoning behind this strategy stems from the belief that parts of the financial markets are efficient and should be invested in with index funds while other parts are inefficient and this where active management is fruitful.
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