Vanguard's Norris Says Volatility Doesn't Give Passive Investment an Advantage

The video explores the debate between passive and active investing, especially in volatile markets. It argues that for long-term investors, market fluctuations are less relevant. Active management was once thought to outperform in downturns, but this hasn't been the case. The discussion includes the potential for active management to thrive if fees are lowered and the market reaches an equilibrium between active and passive strategies. The video concludes that lower fees could enhance active management's performance.

What are the advantages of passive investing during periods of volatility?

How has the argument for active management changed over the last 20 years?

What factors should be considered when hiring an active manager?

Is there a point at which active investing becomes a better option than passive investing?

What impact do management fees have on the performance of active managers?