Active Mgmt vs. Passive - Net of fees

13 replies [Last post]
Scorpio's picture
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Joined: 2005-05-22

Do you guys ever get wholesalers for ETFs or Powershares citing studies
that have "proven" that passive funds outperform active, net of
management fees?  Is this actually true??     

rightway's picture
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Joined: 2004-12-02

OOOOOOHHHHH.  I love this post.

BankFC's picture
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Joined: 2005-05-27

YES.  I bet you could have a study done that "proved" monkeys have very stimulating converstations.

skeedaddy's picture
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Joined: 2005-06-16

Define "passive"

rightway's picture
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Joined: 2004-12-02

Is Poweshares Passive or Active, or...........something else.

Scorpio's picture
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Joined: 2005-05-22

Heh supposedly Powershares are "the best of both worlds".....somewhere
in the middle.  I would categorize them as passive, relatively
speaking. 

Cowboy93's picture
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Joined: 2005-05-10

Powershares are active in my mind...if you take a "dumb" (cap weighted) index and try to screen for certain characteristics, I say that's activity.  Therefore, it's active.  Not as active as a fund w/100%+ turnover, but it's still requires action to be different from a passive approach.....it's low turnover, but so are lots of managers. 
Conceptually it makes a lot more sense to me than just buying a cap-weighted index, but who knows if it'll work better in the long run.  Backtesting doesn't count--my life (or yours) would be a lot better off if I knew what the "past" would look like 10 years from now...
I thought the monkey study was ongoing in bank lobbies w/brokers (and their conversations) there.
OK, that wasn't very nice, but it struck me as clever.

BankFC's picture
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Joined: 2005-05-27

Clever...no.  I heard better cutdowns on the playground in 3rd grade.
If you are gonna try to be a douche bag and make a snide remark for no reason, at least make it worth me reading.
At least then you'd be a clever douche bag.   

Cowboy93's picture
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Joined: 2005-05-10

OK, this calls for a vote:  clever comment or no?
BankFC:  I bet you could have a study done that "proved" monkeys have very stimulating converstations.
Me:  I thought the monkey study was ongoing in bank lobbies w/brokers (and their conversations) there.

Scorpio's picture
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Joined: 2005-05-22

Ok, so no one actually knows....just more wholesaler propaganda I guess...

troll's picture
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Joined: 2004-11-29

Cowboy93 wrote:OK, this calls for a vote:  clever comment or no?
BankFC:  I bet you could have a study done that "proved" monkeys have very stimulating converstations.
Me:  I thought the monkey study was ongoing in bank lobbies w/brokers (and their conversations) there.I thought it was clever you douche bag....

BankFC's picture
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Joined: 2005-05-27

LOL

Cowboy93's picture
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Joined: 2005-05-10

In the future, that will be a capital D capital B when using my title D Bag please.  Perhaps I should change my handle; somehow I see the moderator types taking issue with that.  Oh well, I've been called worse, usually at home!
OK...1 clever, 0 not clever votes.  Let's close the polls!
By the way, FC's comment that you can "prove" anything is wise:  backtesting is the lazy mind's way of "proving" something as he shows using his monkey example.

troll's picture
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Joined: 2004-11-29

Cowboy93 wrote:In the future, that will be a capital D capital B when using my title D Bag please.  Perhaps I should change my handle; somehow I see the moderator types taking issue with that.  Oh well, I've been called worse, usually at home!
OK...1 clever, 0 not clever votes.  Let's close the polls!
By the way, FC's comment that you can "prove" anything is wise:  backtesting is the lazy mind's way of "proving" something as he shows using his monkey example.I double-dare ya to try to change your forum name and see if it goes through.....

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