The Dirty Little Secret Of Passive InvestingGuest Post
The Dirty Little Secret Of Passive Investing by Michael Aked, Research Affiliates
Passive investments have a dirty little secret: Their gross returns are materially depressed by implicit implementation costs. You don’t see these costs in performance attributions, unbundled management fees, or even standard trading cost analyses. But as we recently pointed out in a Journal of Trading article (Aked and Moroz, 2015), the fact that they are unobserved doesn’t mean they don . . .
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