By: Drizzt
An important article as a reminder that proponents of index investing painted alot of advantages of it over active investing. However, the main advantage that i see is drastically low annual cost compare to active funds. If you buy and hold indexes, your returns will depend on how well the index does, which eventually means that index investing != better returns.
In the debate over active vs passive investing, the base-case assumption is that a passive investment involves tracking a stock-market index, normally the S&P 500. Read more...