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.
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Diversification cannot assure gains or protect against losses.
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Source: Bloomberg for historic price and return references.
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