Sentences with phrase «of active management»

Because — due to the high costs of active management — the majority of actively managed funds fail to outperform their respective indexes.

At first blush, late 2017 may seem to be a curious time to be writing about the advantages of active management in fixed income.

The fact is, dividend investing is simply a form of active management.

As a result, active ETFs combine the benefits of active management with the traditional structural advantages of ETFs, which results in lower fees, greater flexibility, liquidity, and convenience.

These are the primary tenets of active management as practiced currently.

The traditional measurement of the extent of active management employed by a mutual fund relies on methods comparing a fund's historical returns to those of its benchmark index.

If the market were suffering from an inadequate amount of active management, the consequences would become evident in the performance of passive funds.

We believe this approach gives you the advantages of active management, the broad diversification of index funds, and the low fees of index ETFs.

Meanwhile, proponents of active management suggest weaknesses in the passive approach, including the potential for active management to protect «on the downside» relative to index - weighted portfolios.

High tracking error volatility indicates a high degree of active management.

The lack of active management means that there's less turnover.

As part of an active management style, they are typically held for a few days, since the rebalancing process can affect returns.

Instead, inactive refers to our low turnover approach to investing, which is a critical element of our active management strategy.

Advocates of active management admit that only a minority of mutual funds will outperform their benchmarks, but they argue there is still a significant probability of success.

Like all funds that have an element of active management, however, they come with active risk; in this case, the risk that the fund manager will pick the wrong contract.

Yet we remain as comfortable as ever that our style of active management will continue to produce competitive returns over the long run.

But, this is less a critique of active management than it is the recognition of a simple mathematical reality.

Active share is a method of determining the extent of active management employed by an investment manager and a significant tool for helping investors find those active managers that do outperform their benchmarks.

The combination of active management and the ETF features provide investors an innovative new solution to manage their investment strategy to achieve their investment goals.

They say that active investment management doesn't work, but then they're market timing and picking stocks - which is the definition of active management.

In the mutual fund world, this kind of active management is the norm, but it's still unusual in the ETF space.

Good active managers will also survive and will still make a good living out of active management.

Some think this is the end of active management as we know it while others assume it's just a fad.

While smart beta strategies can provide important benefits in improving returns, reducing risk and / or enhancing returns, we are not advocating for smart beta to take the place of active management.

This represents a substantial shift from the old paradigm of active management, which sought to add returns through market timing and individual security selection.

One of our themes for 2017 is life or death of active management, in which we acknowledge the precarious situation currently facing active management.

The traditional goal of active management is to give you a higher expected return for the same risk.

However, during the down market cycles (bear), the index beat only 34 % and 38 % of its active management competitors.

This is obviously an exaggeration but the zero - sum nature of active management remains.

Whatever else one might say of active management, it is clearly no sure port in an investment storm.

In the near future, another facet of active management may soon be available in the form of professionally managed ETFs.

The question of active management (higher cost) and ETF (lower cost) has been discussed at length in other forums.

And since I believe in individual freedom, I don't have a problem if you know the downsides of active management but decide the risk is worth it.

On the other hand, if you fall on the side of active management, several actively managed mutual funds now have ETF counterparts.

What's less understandable is that we would abandon the idea of active management and the use of judgment to make investment decisions.

He also takes issue with the zero - sum view of active management.

The simple mathematics of active management show that active and passive investors earn the same returns in aggregate, but active investors have greater costs and, therefore, earn lower net returns.

I've been talking a lot in the past year about the evolution of active management and how high - cost active management is fading away.

This study adds to the already impressive body of evidence that demonstrates that the higher costs of active management have a strong tendency to lead to lower investment returns.

He argued, rightly, I thought, that it is a form of active management.

Active Share determines the extent of active management being employed by fund managers: the higher the Active Share, the more likely a fund is to outperform the benchmark index.

But, this is less a critique of active management than it is the recognition of a simple mathematical reality.

To paraphrase Nobel laureate William Sharpe in The Arithmetic of Active Management, the cumulative sum of all investments equals the market return, which nets out to underperformance after fees.

Dispersion provides a measure of the potential outperformance of active management and factor indices — any non-cap-weighted strategy.

The Value of Active Management in the Commercial Real Estate Market: Evidence from Holdings and Trades