Passive Mutual Funds and ETFs: Performance and Comparison
39 Pages Posted: 22 Jun 2018
Date Written: May 30, 2018
Over 26% of investment company assets are held in passive managed vehicles. Thus, it is important to understand what affects the performance of passive vehicles and how to choose among the multiple passive options following any index. This paper examines the factors that are important in explaining differences across funds following the same index and demonstrates how to select a passive vehicle that has a high probability of having the best performance in the following year.
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