Fund Investing: Is Now the Time to Go Active in the US?

The past decade has been profitable for passive investing, particularly in the US. But could we be poised for this to reverse and for active managers to outperform?

David Brenchley 20 December, 2018 | 12:29PM

Wall Street, US equities, S&P 500, US stocks, active investing, passive investing, active management

For investors looking to build a globally diversified portfolio, the argument is strong for going passive for US equities. That’s because the blue-chip S&P 500 is seen as the most efficient market in the world and therefore investors - professional and individual like - find it hard to get an edge.

It’s also “an incredibly diverse index”, says Gary Potter, co-head of multi-manager solutions at BMO GAM. He adds: “Even with the advent and progress of the FAANG stocks over the last 18 months, the S&P 500 remains one of the most diversified global stock market indices.”

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Securities Mentioned in Article

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Facebook Inc A275.59 USD-0.48
Netflix Inc485.00 USD0.44

About Author

David Brenchley

David Brenchley  is a Reporter for Morningstar.co.uk

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