Next video:
Loading the player...

Dan Moisand, CFP® explains how to discuss active vs. passive management with clients.

Related Articles
  1. Investing

    Active Management Case Study: Comparing Index to Actively Managed Fees (MORN)

    Find out how actively managed funds compare with passively managed funds in terms of cost and whether higher cost funds outperform lower cost funds.
  2. Investing

    Passively Managed Vs. Actively Managed Mutual Funds: Which is Better?

    Learn about the differences between actively and passively managed mutual funds, and for which types of investors each management style is best suited.
  3. Investing

    5 Common Misconceptions About Passive Investing

    Be aware of these 5 misconceptions about passive investing when deciding between passive and active.
  4. Retirement

    Active vs. Passive Investing for Retirees

    For most investors, sticking with a passive strategy for retirement investing will probably result in the best long-term returns. But not always.
  5. Managing Wealth

    9 Ways to Make Money with Passive Income

    It's not easy in the beginning, but you can generate passive income that increases with time.
  6. Insights

    Independent Advisors See Passive Investing as an Opportunity According to Charles Schwab Study

    A Charles Schwab survey found that financial advisors view passive investing as an opportunity.
  7. Investing

    The 4 Key Elements Of A Well-Managed Portfolio

    If you choose an actively managed portfolio, be sure that your manager isn't neglecting one of these four points.
  8. Tech

    Robo-Advisors vs. Passively Managed Funds: Which Is Better?

    Expense is the main distinction between the two, but each has its plusses and minuses, depending on the type of investor you are.
  9. Investing

    Factor Based Investing: Combining Active & Passive Strategies

    Factor based investing brings together the best of both passive and active investing strategies.
  10. Investing

    Passive Investing Beats Active in a Bear Market

    Think active management can come out ahead of index investing at least during a bear market? A performance review suggests otherwise.
Hot Definitions
  1. Whole Life Insurance Policy

    A life insurance contract with level premiums that has both an insurance and an investment component. The insurance component ...
  2. Compound Annual Growth Rate - CAGR

    The Compound Annual Growth Rate (CAGR) is the mean annual growth rate of an investment over a specified period of time longer ...
  3. Capital Asset Pricing Model - CAPM

    A model that describes the relationship between risk and expected return and that is used in the pricing of risky securities. ...
  4. Internal Rate Of Return - IRR

    A metric used in capital budgeting measuring the profitability of potential investments.
  5. Current Ratio

    The current ratio is a liquidity ratio that measures a company's ability to pay short-term and long-term obligations.
  6. Return On Investment - ROI

    A performance measure used to evaluate the efficiency of an investment or to compare the efficiency of a number of different ...
Trading Center