Research Review: About active and passive

Ron Bird  |  Investment Management Research Program  |  15 May 2019  |  1.00 CE

While the first funds were attracted into index investing in the mid-70s, initial growth was very slow. The pace has picked up in recent years with predictions being that index investing will represent half of all US equity investing within the next few years.

Irrespective of the advantages of passive investing, one particular disadvantage is that it make no contribution to the price formation process and so has potential negative implications for the efficiency and stability of markets. This is the focus of the first research paper below, which examines the impl...

Not yet a Member? It’s quick and free to join. Already a member? Please log in.

What's new with our live and on-demand continuing education, accreditation and certification programs.

Led by behavioural finance expert, Herman Brodie, the Behavioural Finance - Investment Decision-Making course will help you identify, analyse and evaluate the principal human preferences that influence decision-making in situations of uncertainty, so you can recognise and identify these preferences in others, to improve investment decision-making.