Whether to have an increasing or decreasing equity glide path may have more to do with an investor's risk preference than with asset-class expectations, says Morningstar Investment Management's David Blanchett.
In this 60-minute roundtable report, Morningstar's Russ Kinnel, Ben Johnson, John Rekenthaler, and Christine Benz dissect indexing's popularity, index versus active fund performance, and how investors can effectively blend the best of both in a portfolio.
Tax advantages and interest-rate protection can tip the scales.
April 20-24: Our guide for getting the best out of active, index, and strategic beta funds in your portfolio.
Don't assume all index funds are low cost and tax-efficient, and avoid overdiversification and becoming too hands-on, says Morningstar's Mike Rawson.
There are reasons to tilt active or passive, but provided investors are picking low-cost, proven funds, they can be successful with either or both types of investments, says Morningstar's Russ Kinnel.
Adjusting for several factors--including fees, the time period, and the composition of the benchmark versus managers' real opportunity set--impacts the comparison.
International-equity funds--particularly currency-hedged funds--were the biggest beneficiaries of new investor dollars in March, continuing a broader trend over the last several years.
High potential capital gains exposure, high turnover, and investor redemptions can mean higher tax bills for fundholders.
Long-term government bonds, emerging-markets debt, and preferred stocks may take more prominence for retirees who wish to live solely off a portfolio's income stream, says Morningstar Investment Management's David Blanchett.