What is the future for passive investing?

How do you know if your portfolio is doing well? Compare it against the market; or rather compare it to an index that tells you how the market is performing. And if you are going to be judged against that benchmark, the temptation is to stay close to the index. Add in the fact the more stocks you have in your portfolio the more you lessen the effect of stock specific risk and you can see the attraction of tracking an index. Today there are many different approaches in the management of index tracking funds in its simplest form, a portfolio buys the entire constituents of a chosen inde...