In many ways, this stampede toward
passive investing - in which people put their money into funds that track indexes and broader market themes as opposed to relying on human stock pickers - is uncharted territory.
An investment management behemoth practically synonymous with
passive investing recently made headlines by announcing what the company calls its first actively managed ETFs.
Several factors are casting a pall over industry players: low returns, lower flows, pricing pressure, performance challenges, a big shift to
passive investing, increasing costs and margin compression.
Such low-cost, automated platforms based on
passive investing are very popular in North America and there's no reason why young professionals in the Middle East shouldn't have access to an accessible and proven way to build wealth.
Tencent's shares do not have voting power and it will not have a board seat, but the two companies broadly believe in cooperation that goes beyond
passive investing, according to Snap's filing on Wednesday.
In the ongoing debate of active versus
passive investing we are optimistic for both.
At the heart of
passive investing is index investing.
But analysts said the results highlight the tough market for active fund managers, as investors are shunning the hefty fees of star managers in favour of more
passive investing.
We are excited to build on ICEs index services, which complement our leading fixed income pricing solutions in serving the demand for indexation as
passive investing grows, said Lynn Martin, President & COO of ICE Data Services.
Digitisation, the rise of
passive investing, longevity, regulatory pressure, consumer awareness of costs, pension reforms - the list goes on," he argues.
Passive investing selects a benchmark and then tracks the benchmark closely at minimal cost, and does not attempt to beat the market.
Advisor Portfolio Construction 2016: Responding to fee pressure, regulations and
passive investing.
