Active vs. Passive: The REIT Edition
Actively managed real estate funds have struggled to earn their keep over the past decade. But is the tide turning?
Passive investing is rooted in the efficient-market hypothesis, which questions if active managers are able to consistently generate excess returns over a stated benchmark. Many investors have begun to employ passive strategies in more “efficient” areas of the market, such as U.S. large caps. However, in smaller niches of the market, such as real estate, there is less of a consensus on the active versus passive debate.
Abby Woodham does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.