Active vs passive

Active vs passive performance – Japan

“NOW SHOW JAPAN” is commonly shouted (over the internet) by people looking to debunk an investment strategy. Japan is notorious for being the exception to the rule, where more common investing strategies would have struggled or failed, thanks to the country’s unique economic history – including the famous real estate bubble in the 1980s from …

Active vs passive performance – Japan Read More »

Active vs passive performance – Europe

The outperformance of passive funds continues in Europe, with the majority of active funds underperforming their benchmarks over the last 10 years according to both S&P Dow Jones and Morningstar. Summary   Whilst the degree of actives’ underperformance varied between regions, S&P showed active funds underperformed in every region measured (12/12), and the only region …

Active vs passive performance – Europe Read More »

Active vs passive performance – UK

Contrary to the popular belief that active strategies perform better in supposedly less efficient markets, such as the UK, 75% of large cap domestic UK active equity funds underperformed their benchmark over the last 10 years. Once factor exposure is taken into account, that figure rises to 95% of UK active funds underperforming their benchmarks. …

Active vs passive performance – UK Read More »

Active vs passive performance – USA

The US has always been seen as a region where passives do well. The conventional thinking is that there are thousands of analysts and investment managers covering the stocks in the S&P 500, so the stocks should be pretty efficiently priced. Unsurprisingly, that seems to be the case, with passives trouncing their active counterparts over …

Active vs passive performance – USA Read More »

Can anyone be truly passive? In search of the Global Market Portfolio

As we saw in my last post, investing in a 100% passive strategy using 100% passive vehicles would involve investing in every asset class in the world according to its relative size. The resultant portfolio would be the ‘global market portfolio’, which would reflect the entire wealth of the world, and would form the basis …

Can anyone be truly passive? In search of the Global Market Portfolio Read More »

Active vs passive – what’s in a name?

It’s hard to find somebody with an interest in investments who hasn’t been bombarded from all sides with information on the active vs passive debate. Entire rainforests have been destroyed by active fund managers publishing literature to try and combat the growing popularity of passive investing. For those who haven’t been subject to such bombardment, …

Active vs passive – what’s in a name? Read More »