The Future of ETF's (Passive income investing)

The world moves so fast these days you'd miss an eclipse if you blink..

So it's no wonder then that a lot of mixed thoughts on the likes of ETF fund investing and actively managed funds. If you were not aware, the London Cass Business school conducted a test of active fund managers from 1975 up until around 2012, What they found may shock you...

Only 2% (50 out of 2500) of active fund managers were able to beat their benchmark year on year within the above-mentioned time frame. This means then that yes, certainly no point in investing into an actively managed fund where you can expect to pay an extra 1.50% per annum to the fund manager and his team.

This is why then it is important to have access to the right independent advice in which that firm has access to top tier 1 funds and investment solutions.

Some funds have consistently achieved 15% year-on-year net of charges for the last 5 years, which begs the question, isn't choosing the right fund manager far better than investing in funds that don't manage volatility?

What about navigating out of a Bull market, was April 2020's outcome a result of the end of a bull cycle or can we expect another setback in the market? How will that affect your passively invested ETF portfolio?

For more information get in touch for a complimentary discovery call.

With kind regards.

Sal.