Active vs. Passive investing

Keywords

Active investing
Passive investing
Active managers performance
Individual investors performance
Exchange Traded Funds
Efficient market
Market outperformance
Investment strategy

How to Cite

FAKHOURY, S. (2020). Active vs. Passive investing. Proche-Orient Études En Management, 32(2), 49-73. Retrieved from https://journals.usj.edu.lb/poem/article/view/508

Abstract

In order to manage the equity portion of an investment portfolio, the performance of an active vs. passive investment strategy is studied. It concludes that passive investing remains a better strategy when it comes to performance, cost and tax efficiency, diversification and finally it saves time and puts emotions and stress out of investing. On the other hand, the outperformance of active managers might be possible during certain periods of the market cycle.