'Passive Revolution': Does It Live Up to the Hype?

The video discusses the ongoing debate between active and passive investing, highlighting the rise of ETFs and index funds. It explores the marketing strategies behind these products and addresses concerns about liquidity in junk bond ETFs. The discussion also touches on the differences between human and quant-driven investment strategies, questioning the perceived advantages of human intuition in investing.

What is the main reason behind the rise of ETFs and index funds according to the discussion?

• A shift in investor behavior

• A marketing revolution

• Higher returns compared to mutual funds

• Government regulations

What concern does Howard Marks raise about junk bond ETFs?

• They are too expensive

• They are more liquid than the underlying assets

• They are not diversified enough

• They are not regulated

How have ETFs impacted liquidity in the market according to the discussion?

• They have made liquidity unpredictable

• They have had no impact

• They have worsened liquidity

• They have improved liquidity

What is a common perception about quant-driven funds compared to human investors?

• They have a broader market view

• They lack gut instinct

• They are more expensive

• They are less disciplined

What advantage do computers have over humans in investing according to the discussion?

• They are more creative

• They are less expensive

• They have better gut instincts

• They can process more data