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Friday, 17 February 2017

Emerging market ETFs and the jaws of death

Emerging market ETFs and the jaws of death:

"It may seem a strange position for an active fund manager to adopt, but I am in favour of passive or index investment. The advantages of index investing are clear. Investors can invest in a widely diversified portfolio at minimal cost as management charges are low, as are the costs of dealing. The obvious drawback to index funds and exchange traded funds (ETFs) is that they deprive investors of the opportunity to focus their investment only in good companies and/or shares which offer reasonable value or better. However, it seems that most active fund managers do not even attempt to invest only in good companies, or if they do they are not very good at identifying them. They seem to have similar problems in determining what is reasonable value."



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