In this case, over the long term, the index is usually heavily favored over an active manager. Choosing an index-based ETF portfolio, therefore, gives you the best chance of success. After all, we don’t want our investment portfolios to end up like our NCAA brackets.
Update, going into the Final Four, my bracket is currently winning in my league.
This article was written by Ryan Gilmer, CFA, who is Vice President – Investment Management at TOPS ETF Portfolios, a participant in the ETF Strategist Channel.
Disclosure
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This article provides commentary on current economic and market conditions and is not directly relevant to any particular client account. The information contained herein should not be construed as personalized investment advice or recommendations to buy or sell any security. There can be no assurance that the views and opinions expressed in this article will come to pass. Investing involves the risk of loss, including the loss of principal.
Diversification cannot assure gains or protect against losses.
Past performance is no guarantee of future results. Information contained herein is subject to change without notice and should not be considered as a solicitation to buy or sell any security. Indexes are unmanaged and cannot be directly invested in.
Source: Bloomberg for historic price and return references.
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