There are over 10,000 mutual funds and ETFs in existence today. At EBW, we have a defined process to select the funds that fit best into our strategies. There has been considerable debate over the use of active management versus passive management. Active management uses a portfolio manager and research team in an attempt to either outperform the fund’s benchmark index or to better control risk relative to their index. Passive management, also known as indexing, does not have a human element and seeks to mirror an existing benchmark index. Active management carries higher fees than does passive management and therefore must overcome those fees in order to add value for the investor. Our research has shown that active and passive management do well in different economic conditions. Rather than choose sides, our philosophy embraces both strategies in attempts to manage risk, participate in robust markets and control costs.
Our Investment Policy Committee starts selecting our funds by applying filters to the entire mutual fund and ETF universe in order separate those funds that meet our requirements from those who do not.
