This article was originally published on ETFTrends.com.
By Preston McSwain via Iris.xyz
Based on My True Stories, I’ll Let You Decide
While surfing Twitter recently, I noticed another long debate about the difference between passive and active investment management.
When the debate turned to the meaning and use of the words “active” and “passive, I chimed in by sharing a brief tale of time I spent at a firm that had two different investment management divisions on two different floors.
These two divisions had very different internal cultures as well as very different approaches to investing – approaches that today are called passive and active.
I’m not a great Tweeter and a few people asked me tell this story in a little more detail, so here goes.
Before I dive in, however, let’s briefly review the definitions of “active” and “passive.”
According to the dictionary, “active” means “vital” and “dynamic” and has synonyms such as “hard-working”, “diligent” and “effective.”
By contrast, the word “passive” means “inert” and has synonyms such as “docile,” “acquiescent” and “compliant.” Its literal antonym is the word “active.”
Click here to read the full story on Iris.xyz.
POPULAR ARTICLES FROM ETFTRENDS.COM