Financial Autonomy

When I started my career in investment markets almost 20 years ago all the investment options were what we’d now call Active. We didn’t call them that at the time, it was just the standard way that money was managed. Passive investment had been around for some time, pushed primarily by John Boggle of Vanguard which first launched a passive index fund in 1975. But it took quite a while for enough data to come in, for investors to begin to appreciate why some hard questions needed to be asked about the focus on Active investment management. In more recent times the trend has swung in favour of the passive approach, and variations of that process, with ETF’s (Exchange Traded Funds) driving broad adoption. The increased acceptance and utilisation of passive investment strategies is almost certainly the biggest shift in investment strategy thinking since managed funds kicked off in Australia in 1955. So in today’s episode I’ll be sharing with you the difference between these two approaches, and how we apply these