The decision comes down to an investor’s risk tolerance, Reyes said, and how willing you are to stick with your active manager through a period of underperformance. A combination of passive and active can also help smooth out returns over time, which helps to bolster confidence and keep investors in the market during downturns, according to Hunt.
“The disciplined process of using both passive and active to us is the most attractive of all worlds,” he said.
This article was provided by Bloomberg News.