Passive versus active investing: which one is better?

The video explores the debate between active and passive investing strategies. Active investing involves fund managers selecting stocks to outperform market benchmarks, while passive investing aims to mirror index performance with lower costs. The video discusses the cost differences, popularity, and performance trends of both strategies, highlighting that passive funds have lower fees and have often outperformed active funds. However, recent trends show active funds gaining ground. The video advises viewers to consider their goals, risk tolerance, and consult financial advisors when choosing between active and passive investments.

What are the main differences between active and passive investing strategies?

How do actively managed funds attempt to outperform the market?

What was the performance of the S&P 500 in 2021 and 2022?

Who started the oldest passive fund and in what year?

What are some reasons that might lead an investor to choose one passive fund over another?

What impact do fees have on investment returns in active versus passive funds?

What factors should investors consider when choosing between active and passive funds?