False belief #4

18 December 2020

Thinking that mutual funds are only active management and ETFs only passive management

The truth is:
-Mutual funds are comprised of active and passive funds
- Passive funds are comprised of passive ETFs and index funds
- Active funds should also include Active ETFs

Therefore, the trend of active fund conversion toward ETFs is not going to modify the active vs passive fund debate.

Active fund conversion into ETFs is currently hot news 🔥🔥everywhere in the press. Fund providers surfing on the attractiveness of the ETF acronym are starting to convert some of their active funds into active ETFs.

😎It is an interesting trend showing the interest of combining active funds added value with passive advantages on tax efficiency (in the 🇺🇸), cost, and distribution.

👉I am convinced, as an expert in portfolio construction that investors need reliable and comprehensive data to optimize portfolio construction.

Marlene Hassine Konqui