Asked on 27 Jun 2020
Some robo-advisors preach passive investing but adopt an active and/or tactical algorithmic strategy, as far as I’ve read their white papers.
Some adopt risk-parity allocation while others use a traditional asset allocation.
The use, ETF or UT, does not matter to me, the implementation of it seems to be no different from an active fund.
What is passive investing, in your own words? Is does it only apply at the end-user level or higher level?
In my opinion, if you're making active shifts in your portfolio allocation in response to any market activity or sentiment, you can't be called passive investing. Other than rebalancing to stick to the original asset allocation decided, every other portfolio decision is an active one.
And that's ok. As long as you accept it.
The only way to be as passive as possible is to buy and hold and do nothing till your goals are met.
You can passively invest into active investment tools like Active ETFs or Mutual Funds like EndowUs or actively invest in passive tools like Stashaway or Syfe.
As long as you're investing regularly, and staying invested, while monitoring costs, that's fine.
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27 Jun 2020
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