Hello All! I am back! I had to take a significant break from writing. Had some life-changing activities to complete, which were very exciting but little related to investment. Thus, unfortunately for you, I will not be covering those here :).
I have decided to produce a series on the Future of Investing. The first topic will investigate two big passive investment players. The subject is particularly interesting to me, in that it combines technology and investment.
I have not only passed Level III CFA but have also worked as a business analyst in the investment and banking industries. The impact of technology on the investment world has not only directly affected my work but shaped the world.
This topic will not investigate Alternative Investment, which I plan to do in the future due to the specific expertise it requires and the complexity of the topic. So, I will cover Alternative Investment as a future topic. Having said all of this, let’s start!
Equity and bond asset management is going passive. There are two big players providing a passive investment service, BlackRock and Vanguard (the ‘B&V’ of the title). There are multiple reasons why these two are at the top, but the most obvious one is that they have just been better than other providers at managing their costs with the help of technology. Quite simply they can provide ETFs and other passive funds with lower fees.