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