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00:00 "What is the best passive or active investment?
00:07 And who is the best today?
00:12 Of course, in the past years it was clear that the ETFs were the ones that attracted the most investments and inflows.
00:28 On the contrary, we have seen it in active investing, which has seen a decline in inflows.
00:37 This has affected thousands of jobs, from managers to governors and investors.
00:45 Today, the focus is on the ETFs, not on active investors or managers.
00:56 We only invest in this index and leave these assets to grow over the years.
01:03 According to the past years, we have seen active investment outperform passive investment.
01:14 In the past year alone, we have seen a $79 billion increase in the US ETFs.
01:24 This was not due to the required growth, but because the second worst positive growth rate in 2022 was very difficult.
01:34 We have seen a decline in these ETFs.
01:37 However, the inflows from the beginning of 2023 to October were $57 billion in December.
01:46 This was the biggest increase in the year.
01:48 We have seen a rally in October, and we have seen investors' enthusiasm for these ETFs in December.
01:56 This is in line with the increase we have seen in the past year, with about 24% of the ETFs in October.
02:08 Today, if John Bogle were still alive, he would be proud of what happened in the investment world.
02:19 He is the one who started passive investment, or passive investment in the ETFs.
02:27 The ETFs do not need the intervention of a conservative manager.
02:30 Vanguard was founded in 1975, and it had assets worth at least $2 billion.
02:39 Today, we are talking about trillions of dollars of assets owned by Vanguard.
02:44 The main principle of this investment is to win the market over for a long time.
02:49 This is what the passive investment proved.
02:56 As we said, it follows main indicators.
03:00 One of the biggest investment ETFs, even in Vanguard, is the S&P 500 ETF,
03:07 which is the largest 500-company ETF in the United States.
03:13 It is not just an investment, but it can be used for any purpose, whether it is a stock, a bond, a commodity, or anything else.
03:24 The interest rates are very low, and the interest rates have reached less than 10% per annum.
03:32 If we look at active investing, it is completely different.
03:37 Historically, active investing has been better, which has led to more success.
03:42 But there is a warning for some.
03:45 We do not know if all these investments in passive investment can create what is called a systematic risk.
03:53 We see a great risk in the coming period, which will lead to a collapse of this type of investment.
04:01 We do not know if this warning will lead to something like this.
04:06 The striking thing is that in this period, the over-exceeding of the stocks in these ETFs and others
04:14 has reached a value of more than $13.3 trillion, while active investing is $13.2 trillion.
04:25 I am talking about the end of last year, 2023.
04:30 We see how the situation has changed over the years, how it has become less.
04:36 The question today is whether this passive investment will continue to over-exceed in the coming period.
04:42 As for what we have seen since 2019 to 2023, we have seen a pressure of about $2.5 trillion in these ETFs,
04:53 while active investment has seen a pressure of only $400 billion.
05:01 It is clear that the passive is who controls the balance of the stock market.