“The proportion of active global, US and European fixed income managers who have beaten their benchmarks over the past 15 years is zero,” according to the white paper.
Consequently, Evercore argues that the low cost, passive ETFs are better suited to deliver market exposure.
“ETFs are predominantly the best way for us to build and manage diversified portfolios for pension fund trustees, allowing us to deliver sophisticated, dynamic strategies at two-thirds of the cost of leading off-the-shelf diversified growth funds,” according to the white paper.
For more information on mutual funds, visit our mutual funds category.
Max Chen contributed to this article.