MR. WIENER: The bottom line on active management is that it’s all about costs. There are good managers and bad managers, but what really kills most managers is costs. MR. WIENER: Because active managers can add 20, 30, 40, 100 basis points [hundredths of a percentage point] over time after costs are figured in. WSJ: So if Vanguard is the default, what takes one of its active funds off your list? Do you believe the cycle will change back at some point to favor active managers?

Source: Wall Street Journal March 06, 2017 03:06 UTC