I know there are some people who don’t like indexed investments like ETFs because “there is no manager” and they just don’t feel right putting a lot of money into an investment where there isn’t someone there at the helm.

Well, that’s Superbad Advice.

If you put all the active managers together the net result IS the market, which is what the ETF is simply tracking. So the other way of looking at it is to see it as benefiting from the wisdom of ALL active managers put together. Except at a big discount.

Feel better?

Tags: active management, etf, etfs, investments, money