Active Mgmt vs. Passive - Net of fees

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Apr 12, 2006 2:05 am

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??     

Apr 12, 2006 2:09 am

OOOOOOHHHHH.  I love this post.

Apr 12, 2006 2:42 am

YES.  I bet you could have a study done that “proved” monkeys have very stimulating converstations.

Apr 12, 2006 2:43 am

Define “passive”

Apr 12, 2006 2:46 am

Is Poweshares Passive or Active, or…something else.

Apr 12, 2006 10:04 am

Heh supposedly Powershares are “the best of both worlds”…somewhere
in the middle.  I would categorize them as passive, relatively
speaking. 

Apr 12, 2006 4:30 pm

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.

Apr 12, 2006 5:36 pm

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.   

Apr 12, 2006 8:01 pm

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.

Apr 13, 2006 2:37 am

Ok, so no one actually knows…just more wholesaler propaganda I guess…

Apr 13, 2006 5:41 am

[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....


Apr 13, 2006 2:35 pm

LOL

Apr 13, 2006 2:47 pm

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.

Apr 13, 2006 3:27 pm

[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.....