How to make your ETFs work harder for you

The Active investing vs Passive investing war has been going on for years.

Proponents of the active camp insist that it is better to invest with fund managers who will proactively put your money to good use. After all, they are the professionals who have deep knowledge of the financial markets and are constantly tuned in to news that will make or break your investment.

The passive camp on the other hand, call out the fund managers for their high fees and sub-par returns. Passive investors utilise Exchange Traded Funds (ETFs) which track entire indices. They are cheap to purchase and own.

The issue with ETFs is that they ‘merely’ track market returns. For investors looking to outperform the market, buying an ETF feels like drinking a can of warm beer on a hot day – largely unsatisfying.

 

Fortunately, the situation is about to get better. In recent years, a new breed of ETFs have found their way into the market…

 

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