It doesn't have to be either/or

In the absence of certainty, many are expressing a strong preference for the lower fees associated with passive management.

We'll explore four points we believe are worth considering in the very important active/passive decision:

  1. Passive may not be the safe fiduciary option.
    Implication: Do not automatically dismiss attractive active management opportunities.
  2. Active management is worth considering.
    Implication: Carefully consider the alternatives to passive on a case-by-case basis.
  3. Cap-weighted is not the only way to invest passively.
    Implication: Choosing the flavor of passive is an "active" decision.
  4. There's no "passive" option for target date funds.
    Implication: Understand your plan's target date offering, and monitor and periodically reconfirm its appropriateness.


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