McSwain917

How Can Trustees Be Prudently Passive?

By actively following the evidence.

Interest in what’s commonly called “passive” investing is clearly growing, and trustees are considering index funds and exchange-traded funds (ETFs) more often.

It’s not enough, however, to follow someone’s advice to invest in index funds.  

Actual passivity contradicts the trustee’s duty to act as a prudent fiduciary. Passive investment products are potentially as complex as any other, and prudence demands careful evaluation.

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