Active Mgmt vs. Passive - Net of fees
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Do you guys ever get wholesalers for ETFs or Powershares citing studies
that have “proven” that passive funds outperform active, net of
management fees? Is this actually true??
YES. I bet you could have a study done that “proved” monkeys have very stimulating converstations.
Heh supposedly Powershares are “the best of both worlds”…somewhere
in the middle. I would categorize them as passive, relatively
speaking.
Powershares are active in my mind...if you take a "dumb" (cap weighted) index and try to screen for certain characteristics, I say that's activity. Therefore, it's active. Not as active as a fund w/100%+ turnover, but it's still requires action to be different from a passive approach.....it's low turnover, but so are lots of managers.
Conceptually it makes a lot more sense to me than just buying a cap-weighted index, but who knows if it'll work better in the long run. Backtesting doesn't count--my life (or yours) would be a lot better off if I knew what the "past" would look like 10 years from now...
I thought the monkey study was ongoing in bank lobbies w/brokers (and their conversations) there.
OK, that wasn't very nice, but it struck me as clever.
Clever...no. I heard better cutdowns on the playground in 3rd grade.
If you are gonna try to be a douche bag and make a snide remark for no reason, at least make it worth me reading.
At least then you'd be a clever douche bag.
OK, this calls for a vote: clever comment or no?
BankFC: I bet you could have a study done that "proved" monkeys have very stimulating converstations.
Me: I thought the monkey study was ongoing in bank lobbies w/brokers (and their conversations) there.
[quote=Cowboy93]
OK, this calls for a vote: clever comment or no?
BankFC: I bet you could have a study done that "proved" monkeys have very stimulating converstations.
Me: I thought the monkey study was ongoing in bank lobbies w/brokers (and their conversations) there.
[/quote]I thought it was clever you douche bag....
In the future, that will be a capital D capital B when using my title D Bag please. Perhaps I should change my handle; somehow I see the moderator types taking issue with that. Oh well, I've been called worse, usually at home!
OK...1 clever, 0 not clever votes. Let's close the polls!
By the way, FC's comment that you can "prove" anything is wise: backtesting is the lazy mind's way of "proving" something as he shows using his monkey example.
[quote=Cowboy93]
In the future, that will be a capital D capital B when using my title D Bag please. Perhaps I should change my handle; somehow I see the moderator types taking issue with that. Oh well, I’ve been called worse, usually at home!
OK...1 clever, 0 not clever votes. Let's close the polls!
By the way, FC's comment that you can "prove" anything is wise: backtesting is the lazy mind's way of "proving" something as he shows using his monkey example.
[/quote]I double-dare ya to try to change your forum name and see if it goes through.....