MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication
an InvestmentWires' Publication
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|
MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication |
|
Wednesday, August 15, 2012 Active ETFs: Yea or Nay? The advantages and disadvantages of actively managed ETFs depend on the very advantages and disadvantages of ETFs and active investing, reports Robert Powell from Marketwatch. “Active management, by contrast, provides an opportunity for some investors to outperform a benchmark even if the data suggest that the odds are against them," says Stephen Horan, head of university relations and private wealth at the CFA Institute. The advantages of passive investing include low management fees, low transaction costs, tax efficiency, predictable performance relative to a benchmark, and superior performance compared to the average active manager, Horan noted. On the other hand, active management gives investors the opportunity to outperform a benchmark. “Ironically one of the biggest pros of actively managed ETFs — the fact that they trade on exchanges throughout the day — can also be one of the biggest cons of actively managed ETFs," said David Zuckerman, a principal and chief investment officer with Zuckerman Capital Management. Printed from: MFWire.com/story.asp?s=40944 Copyright 2012, InvestmentWires, Inc. All Rights Reserved |