Debunking the myths of passive investing

The rise of passive investing in Europe is built on the realisation that active managers struggle to outperform their benchmarks over time. While this trend reflects a deep underlying shift in investor behaviour, several common misconceptions about passive funds remain. All passive funds have the same objective, namely to track an index as efficiently as possible, but how each fund achieves this varies; and it is key that the different approaches are understood when selecting which passive vehicle to invest in. Some appear more complex than others. The two most popular vehicles used t...