Active v. Passive? Why It’s Not That Simple Anymore

For the past five decades a radical idea has been eating away at the soul of the global asset management industry: What if you can’t beat the market? At least, not consistently. Then all the time, energy and — most important — money spent trying to do so is wasted. You’d be better off buying a so-called passive fund that holds all the stocks in an index like the S&P 500. This idea became an $11 trillion tidal wave of cash, bringing with it concerns about whether passive portfolios are distor

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