Our Insights

Active vs Passive Investing

Index-style (passive) investing has become more popular in the past couple decades.

Passive investing is an investment strategy to maximize returns by minimizing buying and selling. Index investing in one common passive investing strategy whereby investors purchase a representative benchmark, such as the S&P 500 index, and hold it over a long time horizon.

Passive Strengths

Low fees


Tax Efficient

Active investing refers to an investment strategy that involves ongoing buying and selling activity by the investor. Active investors purchase investments and continuously monitor their activity to exploit profitable conditions.

Active Strengths



Risk Management

International vs U.S.

US equites have outperformed international equities over the past 10 years

Recent US outperformance has been mainly due to:

Investor reference of growth over value

Success of large US tech (FAANG)

Generally greater domestic stability


Valuation is the analytical process of determining the current (or projected) worth of an asset or a company. There are many techniques used for doing a valuation. An analyst placing a value on a company looks at the business’s management, the composition of its capital structure, the prospect of future earnings, and the market value of its assets, among other metrics.


Price to Earnings ratio is a widely used market valuation metric

Expectations of US earnings growth and a strong market has driven up the US P/E

International valuations have stayed significantly lower than the US over the past 10 years