Read Chapter 11: Overview of Equity Portfolio Management.
Read SPIVA U.S. Year-End 2021Links to an external site.. For additional background on this article, be sure to
click on the link at the bottom of the article: Download Full Article.
Select five actively managed equity funds or ETFs.
Read the following resources, which provide assistance in selecting actively managed funds or ETFs:
5 Actively Managed Vanguard Funds to Own for the Long HaulLinks to an external site.
7 Best Actively Managed ETFs: Investors Should Look Beyond Index Funds to More Tactical OptionsLinks to an external site.
Week 2_Select Actively Managed Funds or ETFs on Vanguard
You may also review the following webpages in order to select your five actively managed equity funds:
Schwab Active Equity FundsLinks to an external site.
Blackrock Investment FundsLinks to an external site.
Be sure the “Fund type” is set to “active” and the asset class is set to “equity” if using this resource for this assignment.
In your paper,
Create a table that summarizes the return performance of the five funds you selected compared to their indexes.
Include four time periods for each of the five funds (e.g., 1-year, 3-year, 5-year, and 10-year).
Include the return performance over the same four time periods of each fund’s designated benchmark index.
For assistance with creating your table, refer to Tables, Images, and AppendicesLinks to an external site. if
needed.
Explain the return performance of the five actively managed funds compared to their index.
Explain if the five funds you chose consistently generate alpha (e.g., “beat” the market).
Evaluate the pros and cons of active management for an equity portfolio.
Include two scholarly sources to support your analysis.
Evaluate the pros and cons of passive management for an equity portfolio.
Include two scholarly sources to support your analysis.
