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Active funds vs ETFs: BSD Investing white paper for a fair choice to build outperforming portfolios
What are the issues surrounding existing relative performance comparison calculations? What are the solutions to correct and improve the process? What is the contribution of this innovative approach and why the need to use it to build optimal portfolios?
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Marlène Hassine Konqui
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Portfolio construction expert
member of the SFAF ETF commission
Associate
Director General BSD Investing
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Analysis
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What are the issues surrounding existing relative performance comparison calculations?
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Current widely used approaches in the market to select between those management styles suggest that active managers cannot outperform over long periods of time. As a result, investors often adopt a dogmatic view on the topic. However, those approaches are based on methodological simplifications and errors that fail to arrive at a fair performance comparison between active and passive funds.
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What are the solutions to correct and improve the process?
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A new methodology should be used to fix those errors and eliminate the biases in order to
arrive at a fair comparison between active and passive funds. This methodology is based on a proprietary database and new indicators that include all investment opportunities available to investors. | |
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What is the contribution of this innovative approach and why the need to use it to build optimal portfolios?
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Based on this innovative methodology and looking at non institutional share classes only, a
broad view of performances across asset classes and categories over the past 10 years shows
that active/passive funds results are decidedly more mixed than common belief.
Discover the secrets of BSD investing methodology and the details of the white paper
by clicking here to access the whole article. |
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LATEST NEWS
NEW BSD Investing & L’Allocataire model portfolio offer
DBSD Investing, the independent expert in active/passive fund allocation has partnered with L’Allocataire, the independent expert in asset allocation to offer clients model portfolios based on the best of both worlds for portfolio construction Click here to access the news.
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VIDEO
BSD Investing video : Active funds vs ETFs, How to optimise portfolio performance?
Discover BSD Investing method to select active funds and ETFs to enhance portfolio performance by Marlene Hassine Konqui expert in portfolio construction, active vs passive fund allocation.
Click here to view the video
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VIDEO
BSD Investing & L’Allocataire webinar
Discover BSD investing & L’Allocataire latest macro & active vs passive fund 2022 outlook. Click here to view the video.
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