Money Hacks Podcast: Passive vs active investing - debunking misconceptions

In Money Hacks Podcast: We speak remotely with Gregory Van, chief executive of digital investment adviser Endowus, about the differences between passive and active investing, ETFs and unit trusts.
In Money Hacks Podcast: We speak remotely with Gregory Van, chief executive of digital investment adviser Endowus, about the differences between passive and active investing, ETFs and unit trusts.PHOTO: GREGORY VAN
The US stock market has been roiled by increased volatility amid the coronavirus crisis. For example, the S&P 500 suffered its worst quarterly loss since 2008 but recovered with a record weekly gain.
The US stock market has been roiled by increased volatility amid the coronavirus crisis. For example, the S&P 500 suffered its worst quarterly loss since 2008 but recovered with a record weekly gain.PHOTO: AFP

Money Hacks Ep 72: Passive vs active investing - debunking misconceptions 

12:59 min

Synopsis: In this fortnightly podcast series on Mondays, The Business Times breaks down actionable financial tips.

In this episode, we talk about passive and active investing, ETFs and unit trusts. Why should the average investor care about the differences?

Host Chris Lim speaks remotely with Gregory Van, chief executive and founding partner of Endowus, the only digital investment adviser that now has a CPF investment option, as he explains the following points:

1. Understand why you have a historically proven 17% chance of "beating the market" over a 15-year period even as a professional or "active" investor (2:30)

2. What is the difference between active and passive investing? (5:53)

3. Understand the differences between cash, high-quality government debt like Singapore Savings Bonds, corporate bonds and equities (6:21)

4. How digital investment advisers can help you with lower costs and passive investing coupled with strategic asset allocation (9:40)

Produced by: Chris Lim and Ernest Luis

Edited by: Adam Azlee

Follow Money Hacks podcasts fortnightly on Mondays and rate us on:

Channel: http://bt.sg/btmoneyhacks

Apple Podcasts: http://bt.sg/oeXe

Spotify: http://bt.sg/oeGN

Google podcasts: http://bt.sg/oeGd

Website: http://bt.sg/moneyhacks

Feedback to: podcast@sph.com.sg

Do note: Any financial or investment information in this podcast is for use in Singapore only and is intended to be for your general information. Any particular investment or decision should only be made after consulting with a fully qualified financial adviser.