Stock Talk - Ep 105 - Passive investing flip-flop part 2

Stock Talk

I thought I would be done speaking to this passive investing (sorry I mean low-cost investing) versus active investing debate for while, but it just keeps pulling me back in! After my recent episode where I tried to bring a bit of a reality check into the whole passive/low-cost investing, another revelation has been presented to us. This time by none other than Vanguard, one of the pioneers of low-cost index investing. Recently the company said that they would be releasing a new line of actively managed ETF's. Wait...what! The company of John Bogle who has been firm, consistent crusader for index investing is now changing teams and going to the Dark Side? If this is really going down then Bogle will join other passive-investing ambassadors such as Burt Malkiel and Rick Ferri, who have pounded the table (and sold a few books) about the virtues of low-cost index investing and now seem to be OK with the concept of picking stocks. In this episode, I offer my takes into the latest passive investing flip-flop.