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Wall Street Secret #714: Why Active Investing Underperforms

Money Tree Investing

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The Problem With Mutual Funds

I agree you would pay a higher fee for something that was going to do better, but the question is finding those things. A lot of firms constructing these one off vehicles, I guess they really call them collective trust or something like that, where they're basically taking an active manager, sticking it in an ETF. But now there's no volume. While the mutual funds, they have some drawbacks with costs and one time a day. So if I need to sell anETF, the spread might be larger. There could be a whole bunch of things going on there that now it's an issue whereas with mutual funds, it wasn't.

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