Index Investing vs. Active Management: Are You Making a Mistake?

Assets in passive equity strategies grew to nearly 45 percent of all stock market investments in the U.S., and active equity managers continue to lose ground due to the over $470 billion investors have invested in passive equity strategies like index funds. There is good reason why index investing has an eager and growing participation. It is much cheaper than active management. But, are index funds better for your financial goals? The answer is yes, but with a footnote. For anyone that has listened to our show for some time, you know that we are huge proponents of index investing. There are a lot of reasons to like index funds, but what is the difference between index investing and active management? And how can you use index funds to reach your financial aspirations? That’s what we cover in today’s episode of The Money Guy Show. For more details, please visit the show notes on our website:  https://www.moneyguy.com/2019/01/index-funds-vs-actively-managed-funds-are-you-making-a-mistake/  Learn more about your ad choices. Visit megaphone.fm/adchoices