Why does passive investing become so hot?
- Thread starter 0008
- Start date
Are you talking about passive investing as in investing in index funds instead of managed funds or simply the general public's increased interest in investing?
FOMO. The "stock picker funds have a difficult time beating the SP, so why bother?".
Why don't you check out the market chart for the last 10 years? There is your answer...
Because since 2008 you could have simply bought and held and outperformed practically every actively managed investment fund out there - including many Hedge Funds.
It won’t last, of course, but that’s the reason in a nutshell.
It won’t last, of course, but that’s the reason in a nutshell.
If you invest passively, buy an index ETF or even better dollar cost average into one. You will get very close to the same return as the index. Apparently that's a superior return than most actively managed portfolios.
The bonus is you don't have to do any work, make any decisions or take responsibility for your performance.
The bonus is you don't have to do any work, make any decisions or take responsibility for your performance.