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West Coast Phone: 949-226-8342
East Coast Phone: 732-226-3113

Services

Low Cost Passive/Index Portfolios

The debate between the merits of active and passive management will likely go on forever because both approaches have merit on their own and for different reasons.

One great aspect of passive portfolios is low cost. We also know from academic research that over 90% of the variance in portfolio returns is due to asset class selection not individual security or fund selection. While security selection can impact a portfolio, sometimes it is positive and sometimes it is not. For some, passive investing is preferable because you take the guesswork and risk of trying to chose the outperforming funds and keep costs low. For these reasons, passive portfolios can be used as a core part of a portfolio or for the entire portfolio if preferable. 

Portnoff Financial can implement low cost, passive portfolios using both mutual funds and exchange traded funds from various fund families including Vanguard and Dimensional Fund Advisors (DFA). For more information, schedule an Introductory Call