The question of active management (higher cost) and ETF (lower cost) has been discussed at length in other forums.
Not exact matches
Scott Burns, director
of ETF analysis at Morningstar, says the asset -
management industry is asking the wrong
questions about
active ETFs.
However, deciding whether
active management or passive
management is a better approach to investing is one
of the most heavily debated
questions in the investment world.
Our
question is, «Should the debate
of ETFs versus mutual funds be a passive
management versus
active management debate?
But, I believe the choice
of which type
of investment to pursue — if only one is to be chosen — is more a
question of passive versus
active management style, and it is not mutually exclusive.
A small
active share raises the
question of why an investor would bother paying a premium for
active management, rather than holding a lower - cost index fund.
Above - benchmark returns («alpha») are often achieved by weighting specific factors, calling into
question the cost
of active management.