Arrival of ETFs – Are Pension Funds in Luck?
In recent years active investment management has come under more scrutiny than ever before. The reason is clear – of late, most active managers, particularly those focused on large-cap stocks, have struggled to beat their benchmarks.
Picking stocks is hard, picking other people to pick stocks for you is even harder – and this is the daily challenge for pension fund boards of trustees. What is even worse, picking stocks is a zero-sum game. Exchange Traded Funds, aka ETFs, are ideal for pension funds who do not want the hassle of picking active asset managers in the hope that they will be able to generate above benchmark returns to compensate for the high fees they charge. For full article click link below Arrival of ETFs – Are Pension Funds in Luck