Comparing Active vs. Passive Investing at the Portfolio Level
Oct 2, 2006
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By Craig L. Israelsen, PhD
In the past nine years, passive portfolios outperformed active ones over three years, while active portfolios beat passive ones over five and nine years. Active was also the winner during the 2000 downturn, although indexed portfolios worked better during the upturn. Maybe the lesson here is that you should have both types of investments in clients' portfolios.