3 Important Shortcomings You Should Know About Passive Investing
“Passive” investing removes human hunches from the process of what to buy and sell. Essentially, in a passive fund such as a passive Exchange Traded Fund (ETF), the portfolio manager follows a blueprint, such as an existing index, and does not actively manage the portfolio. However, if passive investing sounds like a simple, cost effective and easy way to protect and build wealth, why doesn’t everyone invest this way? The following article highlights 3 important ETF shortcomings all investors should be aware of.