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Larry Swedroe: Active Fails In Fixed Income

TedTed
in Fund Discussions
FYI: There is a myth that active bond fund managers want and need you to believe. It goes something like this: “Sure, active stock picking isn’t likely to work, but in fixed income, active management really shines.” This is a strange argument to make, because:
Regards,
Ted
http://www.etf.com/sections/index-investor-corner/swedroe-active-fails-fixed-income?nopaging=1

Comments

  • Graust
    Am I the only one who is pissed off at this article? Grrrrr....I guess what I should expect from a high priest of Boglism.
  • jerry
    I also think Mr/ Swedroe is wrong though he is correct by his definition .My definition of outperformance is outperforming. I don't want to increase credit risk or duration as I am not smart/knowledgeable enough I want my manager to do that and if his(or her) bond selection is not great but the fund manger gets credit risk and duration correct I say bravo and pocket the money left on the table by the purchaser of the bond index
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