Passive

"All the time and effort that people devote to picking the right fund, the hot hand, the great manager, have in most cases led to no advantage."
- Peter Lynch

 

Passive approaches to investing are based on the belief that markets are largely efficient. Inefficiencies can occur under the efficient market hypothesis, but adherents believe the inefficiencies are difficult to identify, hard to exploit profitably, and disappear quickly. 

Advocates of passive investing believe that over time, the vast majority of managers cannot add value in excess of their costs.  By definition the aggregate gross performance of all market participants (active managers) must equal the broad market and the aggregate performance of all active managers must underperform the broad market by the average fee.  Furthermore, passive investors contend that the vast majority of fund manager outperformance is more attributable to luck than skill and that even if there was evidence of skill, distinguishing the lucky from skillful is extremely difficult. 

Passive Investing may be right for you if:

  • You believe markets are generally efficient or you believe inefficiencies are hard to find and exploit profitably
  • You don’t believe an active manager can add consistent value or you don’t believe that it is possible to distinguish luck from skill in active management
  • You wish to minimize costs
  • You seek tax-efficiency

Flat Fee Portfolios offers two distinct passive strategies utilizing ETFs and Dimensional Funds.  While the philosophy behind each approach is different, both strategies are low-turnover and low-cost with the blended expense ratio averaging about 0.30%. 

Learn more about Passive Investing with ETFs >>

Learn more about Passive Investing with Dimensional Funds >>

 
Please read the following important disclosures:

Pricing for accounts under $1,000,000.  The fee for accounts over $1,000,000 is a flat 0.24%.  Call to discuss pricing for endowments, trusts, and institutional accounts.

Flat Fee Portfolios is a dba of MACRO Consulting Group, LLC.

Advisory Services are offered through MACRO Consulting Group, LLC, a registered investment adviser with the Securities and Exchange Commission.  MACRO Consulting Group, LLC only transacts business in states where it is properly registered, or is excluded or exempted from registration requirements.

TD Ameritrade, Fidelity, Foliofn and LPL Financial are the firms that MACRO Consulting Group, LLC uses to custody our client assets.  TD Ameritrade, Fidelity, Foliofn and LPL Financial and MACRO Consulting Group are separate and unaffiliated firms and are not responsible for each other’s services or policies.  TD Ameritrade, Fidelity, Foliofn and LPL Financial do not endorse or recommend any advisor.

Please review Important Disclosure Information set forth in the last section of this web site. 

Information on this web site is directed toward U.S. residents only.

 

TD Ameritrade, Inc. is the firm that we use to custody our client assets. TD Ameritrade and MACRO Consulting Group are separate and unaffiliated firms, and are not responsible for each other’s services or policies. TD Ameritrade does not endorse or recommend any advisor and the use of the TD Ameritrade logo does not represent the endorsement or recommendation of any advisor. Brokerage services provided by TD Ameritrade Institutional, Division of TD Ameritrade, Inc., member FINRA/SIPC/NFA. TD Ameritrade is a trademark jointly owned by TD Ameritrade IP Company, Inc. and The Toronto-Dominion Bank. Used with permission.