The funds combine active and passive investment strategies within a single portfolio and are now available through Fidelity, Pershing, and TD Ameritrade, and will soon be available through Schwab. The ActivePassive Funds family offers four U.S. equity funds, two U.S. bond funds, and three international funds.
The results of FundQuest’s research determined the optimal percentage of actively and passively managed investments for each of the nine funds, the company said. The range of active management in each fund varies from an optimal 36% for large cap to an optimal 95% for emerging markets.
FundQuest hired subadvisers for the active management portion of the funds and the passive investments incorporate either exchange-traded funds (ETFs) or index-based mutual funds that track each category’s index.
More information is available at www.activepassivefunds.com.