Besides actively managed investment funds, passively managed funds have attracted significant attention in recent times by their low cost structure and high degree of transparency. While in the case of actively managed portfolios the expertise and effectiveness of fund managers is reflected in their professional reviews and the corresponding performance of products, passively managed funds consist of portfolios that mirror the components of a market index hence the performance is the result of proper and high quality tracking. The advantage of passively managed funds is the low cost structure that makes the underlying futures products available for a fraction of its cost.
Since december 2013 we’ve been ranking over 1200 European ETFs, with our benchmarking system based on high quality data management and the 3 objective criteria (performance, volatility, sharpe) used to evaluate and compare financial vehicles we are able to project the future success or the lack thereof (e.g. due to tracking errors) of passive fund management. (Sooner or later humanity is going to compare the effectiveness and power of computers in this field anyway.)