Sit back and watch the minimal effort pay off

Business

Sit back and watch the minimal effort pay off

Data show evidence-based investing, which comes up with a passive investment offering, is effective

Chris Gilmour

Index investing, specifically exchange-traded funds (ETFs), started gathering pace in SA about 15 years ago, with ETF industry professionals such as Mike Brown, Nerina Visser and Roland Rousseau passionate about tracker funds and why they are so much more effective than expensive active fund managers.

This passive approach to investing is now associated with the latest buzzword in financial markets: “evidence-based investing” (EBI).

EBI uses appropriately long timeframes, and evidence that is robust, rational, repeatable and has statistical significance. It combines this foundation with low costs, desired performance returns and suitable diversification, and comes up with a passive investment offering...

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