FYI: There are two big, ongoing debates relative to index (or, more broadly, passive) investing. The first is whether active or passive (which I define as neither market timing nor individual security selection) management is the winner’s game (the one most likely to allow you to achieve your goals). The overwhelming evidence, as presented in my book, “The Incredible Shrinking Alpha,” shows that passive investing is the prudent choice.
The other debate that rages on is if a total-market approach (with John Bogle often seen as the standard-bearer) is “best,” or whether “titling” a portfolio to well-documented factors is likely to produce higher returns, and perhaps higher risk-adjusted returns.
Regards,
Ted
http://www.etf.com/sections/index-investor-corner/swedroe-what-makes-factors-endure?nopaging=1
