What is the primary method used for full physical replication in passive management?
Holding a representative subset of securities
Exclusive use of derivative products
Holding all index securities in the same proportions
Purchasing only large-cap stocks
What is the main objective of active management relative to a benchmark index?
Faithfully replicate the index performance
Generate outperformance relative to the index (alpha)
Minimize management fees
Avoid all market risk
What is the main advantage of passive ETFs in terms of transparency compared to active funds?
Lower fees
Continuous liquidity during market hours
Full transparency on holdings
Ability to outperform the market
Preferred vehicles for passive management
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Passive management is based on the hypothesis that markets are inefficient.
True
False
Bull market phases structurally favor active management.
True
False
Categorize items by dragging them to the appropriate zones
Items to categorize:
Alpha seeking
High fees
Limited transparency on portfolio composition
Index replication
Low fees
Full transparency on portfolio composition
Categories:
Active management
Passive management
According to the SPIVA France study for the first half of 2024, what percentage of active managers underperformed their benchmark index in the French equity segment?