‘If managing an active fund is like being the captain of an ocean liner, managing a passive one is like being in charge of a moonshot each and every day. Get the trajectory wrong and you get fired.’
That remark and the similes therein are courtesy of market-indexing skilled Dave Nadig, chief government of ETF.com.
The putting citation seems in a report by MarketWatch’s Ryan Vlastelica showing Monday within the Wall Street Journal.
The story much less memorably however as tellingly quotes Michelle Louie, co-manager of the Vanguard Group fund
that a minimum of Warren Buffett pointed to in claiming victory for his wager that a passive S&P fund could outdo a basket of hedge funds over a decade’s time, as having been struck early on by the humility on show amongst her colleagues, given how much money Vanguard manages. Vanguard’s fund managers, she says, view themselves as nothing greater than stewards of shoppers’ belongings.
“Index-fund managers are the underappreciated rock stars of finance,” observes Nadig.