Asked by Anonymous
Asked on 14 Mar 2019
This would boil down to what kind of investment your prefer. If you are someone who does not like to monitor markets then passive investing would be a better choice. If you like to actively monitor markets and see when is the best time to buy and sell shares then active investment would be a better choice!
Passive investing would be ideal if you want to sleep in peace at night and do not have the time to monitor the market every day!
It depends on your overall strategy and thinking.
Either way you could be better or worse off.
It ultimately depends on whether you know what you are doing or not.
Generally ETFs are diversified. And more for longer term outlook if you are talking about ETFs such as the S&P500.
I believe the real comparison here is active management vs passive management.
So you see, these are quite misused terms !
what you should do depends on your skill levels, and return requirements. This is not easy, and it takes time. If you have neither, then a set of diversified active/passive ETFs that are rebalanced infrequently is probably the most convenient choice.