The blurring line between active and passive management

Can they still be categorized in separate buckets? And why they’re better off together

Andrew Willis 5 April, 2019 | 2:00PM
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Passively managed products are coming out increasingly with active options. And actively managed products rely on increasingly sophisticated sets of passively-derived data sources. With a widening spectrum of combinations between both approaches, and an increased diversity of investment recipes, are two labels still appropriate for the marketplace of today?

Panelists at the 2019 Exchange Traded Forum earlier this week discussed how new technologies and actively selected targets are blending calculations and creativity into a continuum of investment approaches, to the extent that investors should view their portfolios with overlapping lenses and an open mind to benefit from the best of both worlds.

Passive should no longer be pitted against active, and vice versa. There is a place for both, said Michael Keaveney, Head of Investment Management for Morningstar Associates Inc. “Not only do you want both, but if you don’t have already have them in your portfolio, then you should have both.” Keaveney, was joined by panelists Robert DeRochie, Sr. Vice President and Client Portfolio Manager, Fixed Income at First Trust Portfolios and Deborah Fuhr, Managing Partner and Co-founder of ETFGI.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
General Electric Co12.94 USD-3.76Rating

About Author

Andrew Willis

Andrew Willis  is Content Editor for Follow him on Twitter @AndrewWillisCDN.


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