By undertaking this approach, however, investors are no longer using alternative indices as a
relatively passive investment vehicle — they are now engaged in a very active management approach, he adds.
At one end of the spectrum, you get investors who committed resources to do high quality jobs in active management... At the other end of the continuum are
purely passive investment vehicles — index funds.
The current market regime, which has persisted since the end of the financial crisis, has sharply elevated stock and bond prices, and made winners
of passive investment vehicles that seek to replicate these markets.
Because we believe that passive investing is the winnerâ $ ™ s game, we think the answer is simple: You should choose one of
the passive investment vehicles available to you, either the Vanguard Emerging Markets Index Fund, a comparable exchange - traded fund, or one of the three emerging market funds offered by Dimensional Fund Advisors (DFA), large, small, or value.
If you * insist * on getting the cash into the stock market, I'd follow Canadian Capitalist «s sleepy - mini portfolio (or one of the other easy,
passive investment vehicles).
For example, an S&P 500 ETF (mentioned in the prior section) is
a passive investment vehicle.
As financial advisors increasingly adopt ETFs, the wholesale shift from actively managed mutual funds to
passive investment vehicles is driving more inflows to ETF providers like Vanguard and Blackrock and State Street and than all other mutual fund families combined... and leading mutual fund companies into a mad scramble to figure out what they have to do to once again appeal to financial advisors.
The fund is
a passive investment vehicle that is not actively managed.