Blog
Introduction
The debate between passive and active investing isn’t new, yet it remains a hot topic. Passive strategies, like index fund investing, aim to match market returns with minimal fees, while active investing seeks to outperform through stock-picking or tactical asset allocation.
Pros and Cons
Passive Investing
Pros: Lower fees, less complexity, historical outperformance of many index benchmarks vs. active funds.
Cons: Zero chance of beating the market if the index underperforms.
Active Investing
Pros: Potential for higher returns if a skilled manager identifies undervalued assets.
Cons: Higher costs, greater risk of underperformance, requires deep research.
Supporting Data
Morningstar data shows that only 23% of active U.S. stock funds beat their passive counterparts over a 10-year span1.
How Surmount Wealth Does It Better
Surmount Wealth bridges the gap by offering hybrid approaches—blending passive index ETFs with opportunistic plays based on data analytics. It’s a balanced formula allowing both hands-off investors and those seeking strategic tilts to benefit from our platform’s insights.
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