Exchange traded funds are driving the trend for passive investing forward with innovations such as short ETFs
The pros and cons of passive investment versus active management are well-documented, with each approach having their advantages and disadvantages. They are no longer seen as mutually exclusive and instead it is now more about how passive investing can complement and enhance active management. Exchange traded funds (ETFs) are at the forefront of driving this trend forward. ETFs are index-tracking funds that are traded on an exchange and provide investors with a liquid, low cost and transparent way to gain their index or 'beta' exposure. ETFs were first launched in the US in 1993 and were ...
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