37 min
The evidence banks don’t want you to know: Active vs Index Investing in Belgium [018] The FIRE Belgium Show
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- Investing
Over the last 20 years, the stock market went up by 500%!! *
1000 euros invested 20 years ago could have become 6000 today. That’s insane.
But you know what’s even crazier… and very sad…
The vast majority of investors only got a tiny piece of this growth.
In fact, the average investor investing in the stock market barely managed to get 100% return over the same period. The average investor that had invested 1000 euros 20 years ago, would have 2000 euros today.
That’s a difference… and a loss of 400%.
4000 euros in this case, but much much larger sums for most people.
In this episode, we review the 5 biggest reports and studies that explore Active vs Passive Investing so that we can better understand
- The difference in performance between active and passive investing
- Why there such a enormous gap in performance
- What we (individual investors) can do about it
If you’re curious about
- How evidence-based investing works
- How to maximize your chance of having high investment returns
- How active and passive investing compare
Then this episode is for you.
And if you know anyone who is investing with bank funds (including pillars 2 and 3 pension funds), then share this episode with them.
—
*The S&P 500 went up 500% over the past 2 decades. The average investor in the meantime only got 100%. And this is before inflation. Source: JP Morgan Guide to the Markets.
Links mentioned in the episode:
DALBAR QAIB Studies:
https://www.dalbar.com/QAIB
https://www.ifa.com/articles/dalbar_2016_qaib_investors_still_their_worst_enemy
JP Morgan Guide to the Markets:
https://am.jpmorgan.com/content/dam/jpm-am-aem/global/en/insights/market-insights/guide-to-the-markets/mi-guide-to-the-markets-us.pdf
SPIVA Scorecard:
https://www.spglobal.com/spdji/en/research-insights/spiva/spiva-library/
Morningstar Active vs Passive Barometer:
https://www.morningstar.com/en-uk/lp/european-active-passive-barometer
ESMA Costs and Performance of EU Retail Investment Products:
https://www.esma.europa.eu/sites/default/files/2023-12/ESMA50-524821-3052_Market_Report_on_Costs_and_Performance_of_EU_Retail_Investment_Products.pdf
The Academic Advantage:
https://www.ifa.com/pdfs/the-academic-advantage.pdf
---
►► Free Workshop on Index Investing for Beginners in Belgium: create passive income from the stock market, without paying high fees to banks or advisors, taking unnecessary risks or spending all day analyzing the markets. Free Workshop → https://firebelgium.com/investingworkshop
---
Download the FIRE Belgium Beginner's Guide to Index Investing: https://bit.ly/FIREBGuide
Learn about Financial Independence in Belgium: https://firebelgium.com
Subscribe to the newsletter: https://firebelgium.com/#Subscribe
Join the community: https://www.facebook.com/groups/FIREBelgium
Over the last 20 years, the stock market went up by 500%!! *
1000 euros invested 20 years ago could have become 6000 today. That’s insane.
But you know what’s even crazier… and very sad…
The vast majority of investors only got a tiny piece of this growth.
In fact, the average investor investing in the stock market barely managed to get 100% return over the same period. The average investor that had invested 1000 euros 20 years ago, would have 2000 euros today.
That’s a difference… and a loss of 400%.
4000 euros in this case, but much much larger sums for most people.
In this episode, we review the 5 biggest reports and studies that explore Active vs Passive Investing so that we can better understand
- The difference in performance between active and passive investing
- Why there such a enormous gap in performance
- What we (individual investors) can do about it
If you’re curious about
- How evidence-based investing works
- How to maximize your chance of having high investment returns
- How active and passive investing compare
Then this episode is for you.
And if you know anyone who is investing with bank funds (including pillars 2 and 3 pension funds), then share this episode with them.
—
*The S&P 500 went up 500% over the past 2 decades. The average investor in the meantime only got 100%. And this is before inflation. Source: JP Morgan Guide to the Markets.
Links mentioned in the episode:
DALBAR QAIB Studies:
https://www.dalbar.com/QAIB
https://www.ifa.com/articles/dalbar_2016_qaib_investors_still_their_worst_enemy
JP Morgan Guide to the Markets:
https://am.jpmorgan.com/content/dam/jpm-am-aem/global/en/insights/market-insights/guide-to-the-markets/mi-guide-to-the-markets-us.pdf
SPIVA Scorecard:
https://www.spglobal.com/spdji/en/research-insights/spiva/spiva-library/
Morningstar Active vs Passive Barometer:
https://www.morningstar.com/en-uk/lp/european-active-passive-barometer
ESMA Costs and Performance of EU Retail Investment Products:
https://www.esma.europa.eu/sites/default/files/2023-12/ESMA50-524821-3052_Market_Report_on_Costs_and_Performance_of_EU_Retail_Investment_Products.pdf
The Academic Advantage:
https://www.ifa.com/pdfs/the-academic-advantage.pdf
---
►► Free Workshop on Index Investing for Beginners in Belgium: create passive income from the stock market, without paying high fees to banks or advisors, taking unnecessary risks or spending all day analyzing the markets. Free Workshop → https://firebelgium.com/investingworkshop
---
Download the FIRE Belgium Beginner's Guide to Index Investing: https://bit.ly/FIREBGuide
Learn about Financial Independence in Belgium: https://firebelgium.com
Subscribe to the newsletter: https://firebelgium.com/#Subscribe
Join the community: https://www.facebook.com/groups/FIREBelgium
37 min