The Rise of ETFs And Passive Investing

Written by The Money Lab Team on September 29th, 2016

The Rise of ETFs And Passive Investing

Can you beat the market?

Unfortunately, I have some bad news for you…

Statistically the chances are slim.

In fact, depending on where you look, the vast majority of active fund managers fail to do so.

It’s even been reported that up to 60% of active Unit Trust managers in SA can’t do so.

But the real question is why would you want to take on additional risk, just to try to beat the market, when you can match the market instead?

That’s where ETF (and passive investing) comes in, and they’ve literally revolutionized the financial industry.

Naturally, active fund managers didn’t take this lightly, and the debate between active vs passive investing has raged on for years.

That’s why I wanted to delve a little deeper into the numbers behind this boom, and why I think passive investing is simply a must-have!

Let’s get to it. 

 

The Sector Expected To Reach $7trillion

(Source)