For example, the plaintiffs take the position that, for certain asset classes, a fiduciary has no basis to offer an actively managed investment option when a lower-cost, passively managed fund
is available in the same asset class.
The primary motivation for the selection of any fund, including a passively managed fund
, should be participants' best interests--not protecting plan fiduciaries from lawsuits.
JETS is a smart beta, passively managed fund
that is designed to track the US Global Jets Index.
For a passively managed fund
, which is generally 99% invested, the cost of cash is only 0.
Thus, if plan fiduciaries study the facts and circumstances-by employing a prudent decisionmaking process-and conclude that an actively managed fund, despite being more expensive, is likely to achieve greater returns or prone to be less risky than a lower-cost, passively managed fund
, they should feel comfortable offering the investment.
Rather than trying to beat the market by stock selection some believe that it makes more sense to accept the average level of returns offered by a passively managed fund
GOAU is a smart factor, passively managed fund
that is designed to track the U.
In the go-go days of the dot-com boom, the attitude to situations such as Long Blockchain may have been "caveat emptor", but in a world where assets are flowing out of actively managed funds into passively managed funds
, perhaps philosophies should be different for companies that are a part of major indices.
2 billion, of which $686 billion went into passively managed funds
Net new assets into actively managed funds from all retail channels independent broker dealer, wirehouse, RIA and online retail were up $87 billion versus $48 billion for passively managed funds
He also claimed that the 401(k) plan sponsored by Ferguson Enterprises included too many actively managed funds with higher fees than passively managed funds
30, actively managed mutual funds experienced outflows of approximately $304 billion over the trailing 12-month period, while passively managed funds
and ETFs brought in $437 billion.