Who Wins the ‘Passive vs. Active’ Institutional Debate? Pt. 7: U.S. High Yield Bonds

This is the seventh and final in my series of blogs on whether a passive or active approach performs better in the mutual fund space.

Our final article looks at the bond market, asking if there are indexing opportunities in all available bond asset classes. Well, the High Yield bonds space is definitely an interesting screening. Keep in mind I’m using Morningstar Direct as my source of screening, testing and research on return/expense data points.  

"Advisors Urge Investors: Don’t Panic"

Andy was quoted in ThinkAdvisor back in August, check out the Article below:

Don’t panic, review your portfolio and, if your stomach can handle it, consider buying more stocks. That’s what many financial advisors have been recommending to clients during the latest stock market plunge.

At its lowest point over the past week, the Dow Jones Industrial Average was down more than 1,000 points intraday on Monday, before recovering 80% of that daily decline. But even after the recovery, the Dow was off 8% for the week.

Who Wins the ‘Passive vs. Active’ Institutional Debate? Pt. 5: Foreign Large Cap Blend

In my previous article on this evergreen topic of debate for advisors and investors, we’ve analyzed all U.S. Large Cap Blend, Growth and Value mutual funds, along with the most recent – Who Wins the ‘Passive vs. Active’ Institutional Debate? Part 4: US Mid-, Small-Cap Blends — to see who wins the passive versus active debate. (See all the articles in this series on this landing page.)

Part 4

Who Wins the ‘Passive vs. Active’ Institutional Debate? Part 4: US Mid-Small-Cap Blends

In my first three articles, we hit on the broad U.S. Large-Cap arena—Blend, Growth and Value. All three provided some interesting findings on the hugely debated subject matter relative to the institutional investment space. In this article, we’re going to round out the U.S. core equity investing space by analyzing both the Mid-Cap Blend and Small-Cap Blend. Again—keep in mind, I’m using Morningstar Direct as my source of screening, testing and research on return/expense data points. So how does the U.S. Mid-Cap Blend space fare in the debate?

Who Wins ‘Passive vs. Active’ Institutional Debate? Pt. 2: U.S. Large Cap Growth

I hope everyone enjoyed my first article in the series—Who Wins ‘Passive vs. Active’ Institutional Debate? Pt. 1: U.S. Large Cap Blend—on this highly debated subject matter. However, before we dive into the Large Cap Growth space analysis, let me respond to a few comments relative to my first article. These articles are derived from a simple database screening, with the goal of creating a pure ‘apples to apples’ comparison between the institutional-only active vs. index mutual fund space.

Part 1

Who Wins ‘Passive vs. Active’ Institutional Debate? Pt. 1: U.S. Large Cap Blend

Advisors and investors alike hear all the time in various articles, speeches and interviews that passive investment funds (indexes) always outperform active investment funds (non-indexes). In my view, however, I’ve found that most articles written on the subject rarely provide precise “apples to apples” comparisons, much less an all-institutional dialogue about true data.

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