Sentences with phrase «expense of active strategies»

Not exact matches

And they also don't incur all the trading costs, taxes, and other expenses that go into some of the more active strategies.

For some investors, this active management strategy is an attractive feature of bond funds, but it typically comes at the cost of management and other fees defined by the fund's expense ratio.

You might overshoot in performance if you are lucky, but you are far more likely to underperform, because of the various higher expenses, higher costs, and higher taxes that cumulatively drag down active strategies.

Usually the purpose of doing this type of work is to see if an active investment strategy (after fees and expenses) outperformed a passive investment strategy.

The second link is that the high costs of active strategies, in terms of expense ratios, trading costs and tax inefficiency, result in shrinkage of returns available to investors.