Quantcast
The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:Active or Passive? Why Not Both? Not Rated 0.0 Email Routing List Email & Route  Print Print
Monday, March 17, 2014

Active or Passive? Why Not Both?

News summary by MFWire's editors

Buy active managed. No, just buy indexed.

Are you sick of the Harvard vs. Princeton histrionics yet?

Well, one noted Barron's columnist is offering the very cosmopolitan option of living with both. Can investors own the active funds and passive funds at the same time? The answer, for sure, is positive, according to WSJ's Michael A. Pollock. He illustrates five major tactics by which investors can enjoy the fusion of active and passive funds.

Imagine, a world free of the Passive versus Active cold war. Sounds almost impossible, perhaps visions of flotillas flying over the skyscrapers or demons tobogganing in snow-drizzled heck.

Well, if we are going to indulge in such a fantasy world, let's imagine what wholesalers would be like in this undiscovered country. For one, there might be wholesalers and firms crazy enough to offer ETFs that might compliment active funds, maybe even those of competitors, and vice versus. There might be sharing of information between different fund players in order to generate more sales for all.

But wait, that would be having one's cake and eating it too. As Pollock comments in his article: "Holding a mix of index and active funds is a way to get the advantages of index funds along with the satisfaction and potentially the financial upside of active management."

Under such circumstances, the potential market for selling a portfolio that combines two approaches is emerging. Yet instead of solely criticizing active funds to promote ETFs, how would fund firms work together brand and sell complimentary products? For the big-name asset managers such as Pimco, Eaton Vance, Vanguard, who have been either launching actively managed ETFs or planning to build the mixture, the portfolio-holdings transparency "has been the biggest hurdle," as Vanguard ETF strategist Joel Dickson told Barron's.

Perhaps, in this totally insane and imaginary fund world, wholesalers and firms would act more like the portfolio specialists that look at all of the whle universe of products and sell "solutions" to clients.

Having portfolio specialists sell to clients? That sounds crazy, like that crazy thing BlackRock is doing hiring, training and sending hordes of portfolio specialists to their clients. Or what AllianceBernstein or even Hancock is trying.

Trillions of dollars in AUM crazy. 

Edited by: Amy Xie


Stay ahead of the news ... Sign up for our email alerts now
CLICK HERE

0.0
 Do You Recommend This Story?



GO TO: MFWire
Return to Top
 News Archives
2021: Q1
2020: Q4Q3Q2Q1
2019: Q4Q3Q2Q1
2018: Q4Q3Q2Q1
2017: Q4Q3Q2Q1
2016: Q4Q3Q2Q1
2015: Q4Q3Q2Q1
2014: Q4Q3Q2Q1
2013: Q4Q3Q2Q1
2012: Q4Q3Q2Q1
2011: Q4Q3Q2Q1
2010: Q4Q3Q2Q1
2009: Q4Q3Q2Q1
2008: Q4Q3Q2Q1
2007: Q4Q3Q2Q1
2006: Q4Q3Q2Q1
2005: Q4Q3Q2Q1
2004: Q4Q3Q2Q1
2003: Q4Q3Q2Q1
2002: Q4Q3Q2Q1
 Subscribe via RSS:
Raw XML
Add to My Yahoo!
follow us in feedly


  1. MFDF webinar - ESG, Proxy Voting and Engagement — Where DOL and SEC Regulation has Been and Where it May be Going, February 25
  2. IDC Foundations for Fund Directors, Mar 1-2
  3. MFDF webinar - Board Oversight of ETFs, March 3
  4. FinReg Outlook 2021, March 10
  5. MFDF Director Discussion Series - Open Forum via Zoom (Midwest), March 10
  6. Irish Funds North American Digital Seminar, March 11
  7. MFDF webinar - Municipal and Taxable Fixed Income — A Multi-Speed Recovery, March 12
  8. 2021 Virtual Mutual Funds and Investment Management Conference, Mar 15-19
  9. SEC & DOL Standard of Conduct Rulemakings — Present & Future Considerations, March 23
  10. MFDF Director Discussion Series - Open Forum via Zoom, March 24
  11. ETFGI Global ETFs Insights Summit - ESG & Active ETF Trends, Mar 24-25
  12. MFDF webinar - Asset Management M&A for Fund Directors — Recent Trends and Governance Issues, March 31
  13. MFDF Director Discussion Series - Open Forum via Zoom, April 7
  14. MFDF In Focus: Board Oversight of Sub-advisers, April 15
  15. ETF.com Awards 2020, April 20
  16. The 31st Sub-Advised Funds Forum, Apr 20-21
  17. MFDF Director Discussion Series - Open Forum via Zoom (Northeast), April 21
  18. FIASI virtual event - ESG in Fixed Income: Shining a Light on Transparency, Apr 22-23
  19. 44th Annual AIMSE Marketing & Sales Conference, May 2-4
  20. MFDF Director Discussion Series - Open Forum via Zoom (Southeast), May 5
  21. ICI 2021 General Membership Meeting - Day 1, May 6
  22. ICI 2021 General Membership Meeting - Day 2, May 13
  23. 2021 FINRA Annual Conference, May 18-20
  24. MFDF Director Discussion Series - Open Forum via Zoom, May 19
  25. 2nd annual ETFGI Global ETFs Insights Summit - USA, May 19-20
  26. Irish Funds Online Annual Global Funds Conference 2021, May 19-20




©All rights reserved to InvestmentWires, Inc. 1997-2021
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use