All active? All passive? And/or gives better portfolio outcomes

Daniel Reyes | Vanguard Investments | 23 August 2018 | 0.50 CE

Imagine a world with only two fund options: a passively managed fund and an actively managed fund with similar levels of volatility. Passive funds offer low-cost benchmark tracking, leading to a tight range of relative returns. Active funds offer the potential for outperformance in exchange for a wider range of relative returns. The decision to use active, passive, or a combination of both inv...