Monthly Archives: March 2018

The Pitfalls of Passive Investing

When market returns are attractive, as they have been for the last several years, the lure of passive investing is strong. After all, who wouldn’t want to capture market returns when the market is booming? (Passive investments, or index funds, closely mirror indexes in order to provide investors with broad market exposure at a generally lower cost than actively managed funds.) Passive investing can serve a purpose in a portfolio, particularly in more efficient asset classes, but investors should be aware of the pitfalls of overusing passive investment strategies, as outlined below. Read more »