The Case for Passive VS Active US Equity
Historically, the US equity market as represented by the S&P 500 Index, has been extremely difficult to beat! In the past 15 years, less than 3% of Active Managers have been able to Outperform the Index.
The S&P 500 is highly efficient, liquid, and does not suffer from high single security concentration risk (ie. like the TSX Index has in Canada in the past with Nortel, RIM, Valeant, and Shopify today).
Please click here to see the latest SPIVA research on how difficult it is to outperform the S&P 500 US equity index. This is why our core strategy for US equity market exposure is a Passive US Equity allocation incorporating low cost Index ETFs.