Active versus Passive Investing

The debate between passive and active allocation continues

The ancient rite of pitching hands-on stock selection and passive index investing against each other is about more than simply which provides the best risk-adjusted returns over time. As such, we've assembled some of the more illuminating and exciting research on this topic.

Tracking Error 101: The Intuition Behind Measurement And Control (Qontigo)

When investors design a benchmarked portfolio, every design choice that takes them away from the benchmark has a consequence when measuring fund performance.

Webinar: Passive Investing | The Greatest Story Ever Sold (CAIA)

Watch a presentation on the impact passive investing has had on markets, such as increasing correlations between securities and reducing the ability for companies to go public.

Have Index Funds Become Growth Funds? (Morningstar)

The S&P 500 top 10 is dominated by tech-based growth stocks, leading many to see the index as a proxy growth fund. Does this thesis hold up to closer examination?

Active Or Agnostic? (S&P Dow Jones Indices)

Successful active investment relies on making accurate predictions, whereas passive management requires no such thing. How accurate must these predictions be?

Climate Transition: Choosing An Index (Allspring Global Investments)

For compliance reasons, this paper is only accessible in certain geographies

Climate transition strategies involve challenging implementation questions, with the question of which index should be used being among the most important.

Active REITs in a Real Estate Allocation: A Guide for Investors (CBRE)

Investors are increasingly turning to real estate investment trusts to optimise and enhance exposures in real estate, one of the cornerstones of a real asset allocation.

It Matters if a Fund Manager Has ‘Skin in the Game’? (Behavioural Investment)

The answer is that it does matter. Arguably, a fund manager’s salary, bonus and career should be dependent on the success of their fund.

Vanguard, Fidelity Domestic Active Funds Beat Vanguard Index (Duke University)

This paper contrasts the return of Vanguard and Fidelity active stock mutual funds with the style-mimicking portfolio of Vanguard’s index funds.

Enhancing the Quality of Net Zero Benchmarks (IIGCC)

How can index providers better align benchmarks with the push for a net zero standing? More than 30 investors share their findings in this report.