Moreover, I would not rule out actively managed ETFs for investors where they provide access to some specialized expertise in a far flung corner of the market.
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We found that investment advisory fees paid by pensions for actively managed accounts are exceptionally high and have crept higher over time for no good reason.
FORBES: Why Pension Investment Advisory Fees Are So High (January 1, 2003 )
Finally, where does this leave all of those filings for actively managed ETF products?
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In the closing months of 2002 we conducted research into investment advisory fees paid by pensions for actively managed accounts.
FORBES: Why Pension Investment Advisory Fees Are So High (January 1, 2003 )
Management fees for most of the bigger ETFs range from 0.7% to 0.25% of assets, versus 1% or more for actively managed funds.
The expense ratio of the IWD, for example, is 0.2%, compared to fees for actively managed funds that routinely have expense ratios four or five times those of an ETF.
The SPIVA Scorecard provides performance comparisons corrected for survivorship bias, equal- and asset-weighted peer averages and measures of style consistency for actively managed U.S. equity, international equity and fixed income mutual funds.
The average expense ratio for an actively managed bond fund is 0.75 percent, according to Morningstar.
Some advisers recommend paying higher fees for an actively managed fund that can pick its way through these complex markets.
For domestic actively managed funds the (unweighted) average annual expense ratio has dipped from 1.56% of assets in 2003 to 1.45% today.
Some experts also argue that, in the current low-yield environment, an actively managed approach makes more sense than indexing for bond funds.
Equity fund investors in 2012 paid an average expense ratio of .77 percent for equity funds that are actively managed by professionals, according to the Investment Company Institute.
Index funds, for example, have often outperformed actively managed mutual funds while charging a small fraction of the fees.
You may also want to look at our Model ETF Portfolio for ideas, since it is an actively managed portfolio (as opposed to a list of ETFs) and uses different funds than those listed above.
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However, over the course of extensive discussions, it became increasingly clear that the Merrill Lynch 401(k) product was going to be high cost, consisting primarily of actively managed funds probably not the most appropriate choice for Allegro plan participants, thought Shreve.
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Let's analyze, then, Vanguard's actively managed Windsor funds since their low fees make them a good bet for investors who want some action.
For those retirees, it will require a more actively managed and value-added approach to their portfolios, including investments in the stock market, even then with no guarantees of success.
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There are no expensive actively-managed funds in TSP, and no fees are paid to advisers for speculating on markets.
If you're looking for growth and you want to hold a bunch of actively managed stock funds that turn over their holdings a lot, generating short-term taxable gains, stash them in a 529.
Historic return data shows that 2 out of 3 actively managed mutual funds underperform their benchmarks over a 5 year period when adjusted for survivorship bias, and that both individuals and professionals lose more ground when they try to predict markets by changing their asset allocation.
Sharpe, the Stanford finance professor who devised the widely used Sharpe Ratio for measuring investment risk, recently took another looked at actively managed funds.
At the time, and even now, actively-managed mutual funds were widely promoted by the traditional players in the industry as the preferred investments for retirement plans and ETFs were virtually non-existent.
FORBES: A Traditional Provider Finally Sees the Light; Launches "New" Index-Only 401(k)
For ETFs, is the ability to stem inflows relevant to the small world of actively-managed exchange-traded funds?
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