ETFs have marked a turning point in the asset management industry over the last 30 years. Investing money is a clearly different art since the emergence of ETFs and more widely this has introduced a new way of considering financial markets.
Let us avoid the never-ending debate between passive and active investment. It can be compared to the obsession of nominating the greatest player of all time (GOAT) in a sport like football.
We can easily find common characteristics between portfolio construction – especially multi-asset ones – and team sports. Therefore, as Messi has different features than Ronaldo, active and passive products should not be opposed in a portfolio construction process but associated...
This article first appeared in ETF Insider, ETF Stream's monthly ETF magazine for professional investors in Europe. To read the full article, click here.
Julien Serbit is a senior investment adviser and member of the investment committee at Prime Partners. He has worked across portfolio management and fund analysis at Reyl & Cie, Banque Pictet & Cie and Lombard Odier for 18 years