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.
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.
Adjusting for several factors--including fees, the time period, and the composition of the benchmark versus managers' real opportunity set--impacts the comparison.
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.
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.
New research shows that holding unpopular stocks and avoiding hot ones can lead to outperformance over time, says Zebra Capital Management's Roger Ibbotson.
Panel discussion: Christine Benz , advisor Mark Balasa, and Morningstar columnist Mark Miller discuss how withdrawal rates, asset allocation, Social Security decisions, and long-term-care insurance factor into portfolio sustainability.
Morningstar's Russ Kinnel, Sarah Bush, and Christine Benz highlight their top fund picks for domestic and foreign equity, core bond, inflation-protected securities, and much more.