Active vs Passive Management In Investing

24/06/2025 1h 24min Episodio 5
Active vs Passive Management In Investing

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Episode Synopsis


In this episode of Bare With Us, we dive deep into one of the most debated topics in investing: passive vs. active strategies. We begin by breaking down what an index actually is, how different indices are constructed, and why not all indices are created equal.From there, we explore some of the lesser-known mechanics behind passive investing—what’s happening behind the scenes that most investors never see. Finn shares his perspective as an active Portfolio Manager, explaining how active managers aim to add value, especially during periods of market stress. Mike and Scott weigh in on the merits of both approaches, highlighting how financial advisors can thoughtfully use either strategy to serve different client needs.Key takeaways from this episode:Index construction matters—and it’s not always as passive as it seems.Active market participants can add meaningful value, particularly in volatile or complex markets.There’s no one-size-fits-all solution: the right strategy depends on your goals, behavior, and financial plan.Investor discipline and behavior are often more important than the strategy itself.Whether you're a DIY investor or working with an advisor, this episode will help you think more critically about how your investments are managed—and why that matters.