Fidelity Holds Secret Weapon to Take On Robinhood and Vanguard - WSJ.pdf  Download Fidelity Holds Secret Weapon to Take On Robinhood and Vanguard - WSJ.pdf  

https://www.wsj.com/articles/fidelity-holds-secret-weapon-to-take-on-robinhood-and-vanguard-11612953181?mod=hp_lead_pos6 (Links to an external site.)

Read the above article (in pdf or online). 

Given this week's case, provide your opinions:

1. Lately (in 2020 or 2019), what's the market size for passive investment vs. active investment?

2. Why it becomes more difficult for active investment to outperform index fund, such as S&P 500 index?

3. In your view, why there are still many hedge funds providing active investment strategies? (open question)

4. The recent GameStop incident has put the strategy of some hedge funds under spotlight, what is your view on retail investors herding in the market that drives the individual stock's price far beyond its intrinsic value? (open question)

Answer rating: 100% (QA)

According to the article in 2020 passive investments accounted for 45 of the market while active inv... View the full answer