The End of an Era & The Rise of Active Management for Cryptocurrencies
By Patrick Tan on ALTCOIN MAGAZINE
When Vanguard Group founder Jack Bogle created the world’s first index mutual fund for individual investors at the end of 1975, he launched an era of low-cost investing and started a movement that would come to define the next four decades.
The value proposition of index investing is simple. In the long run, index investors such as Bogle argue that it is difficult, if not impossible, to consistently beat the market, so why even try? Instead, Bogle ushered in an era of passive investing, which invests strictly in indexes. Forget about picking stocks, save on the fees and simply fasten your seat belt and ride the roller coaster that is the market.
But what started as a fringe idea may now have become mainstream. According to analysts at Morningstar, sometime this year, assets in passively managed U.S. equity funds are likely to surpass assets in actively managed ones.
In the same way the past decade has been rough on hedge funds, the epitome of active management, passive, low-cost investing has been having its day in the…
