Insights

Here is what we know about active management: Active Managment is expensive The average expense ratio of actively managed funds is 1.29% vs. an average of .80% for all passive funds. Active Management doesn’t consistently work well Over the last 5 years (2009 – 2013), only 39% of U.S. Equity funds and 29% of International funds outperformed their benchmarks.(2) In those rare instances when Active Management works, it rarely lasts Over the last five years (through March), only 2 out
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Economist, actor and author Ben Stein provides a blueprint for many of the mistakes investors make in his book, “How to Really Ruin Your Financial Life and Portfolio.” Rather than dissuading investors from making these mistakes, he “encourages” investors to trade frequently, believe that we can successfully pick stocks, put our money into hedge funds, etc. “In your heart, as you very well know, you are legions ahead of those average investors, and even legions ahead of the indexes,” he
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