The benefits of passive investments

by | May 6, 2019

Think the average active fund manager can add value over and above the fees they charge? Think again.

According to figures released earlier in the year by S&P Dow Jones Indices, 87% of Australian actively managed funds who benchmarked themselves against the S&P/ASX 200 index, failed to beat the market in 2018.

This was up from 59% the previous year and again reinforces the fact of how difficult it is for long-only active fund managers to outperform the index over the longer term.

It is for this this reason that Collins House Online believes the smarter way to save for the future is via passive investments such as Exchange Traded Funds (ETFs).

An ETF is a type of managed fund that is listed on the stock exchange and which tracks or follows a specific market rather than attempting to outperform that market.  They are low cost, liquid, transparent and provide diversification via the purchase of just one security.

At Collins House Online we offer the choice of 5 professionally managed, diversified portfolios ranging from Conservative through to Aggressive.

Each portfolio is made up of various ETFs covering Australian shares, International shares, Fixed interest, Cash and Property. Each portfolio therefore provides exposure to over 1000 of the world’s largest companies.

Collins House Online

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