Here’s what I like to have a shares box. Every day, thousands of employees wake up early and be independent. They represent the customers of winning intestine, improving supply and coding chains, and they all generate profits.

This accumulates for me – even when hunting a wave or a few winks on the sofa after that. (As I did last week when reading that the presidents are It was done with flexible work.) The shareholders receive a slice of spoils, not the magnification call, we must bear.

So great thanks to all readers who work in one of 1,245 tricks in my country’s money. Indeed, this year your efforts added 17,000 pounds to the value of my wallet – we also hope you!

This also explains my preference for shares over government bonds. I trust more than 140 million employees of the world -class companies to jump from the bed every morning more than those whose job is to collect tax.

It goes without saying, though, there is a great difference in quality through countless companies in my trading boxes. Thus, the returns are also differentiated. For this reason, active managers justify their presence.

If it was only easy. It is difficult to determine the winning stocks early, and I have been written about it Stability. Likewise, those with weak performances do not remain forever.

The aesthetics of stocks believe it is easier to discover a dog. Even if the next NVIDIA or Tesla accuses, at least they can make relative gains by removing the losers from the index.

So when I read for the first time about A boom in the so -called active The boxes circulated on the stock exchange, this is what they assumed that they were offering. We used to call it standard improvement, or tilt, when I was a puppy.

Follow the index, but check garbage based on automatic standards such as low revenues, low margins, high debts, or anything else. But no. Active Investment Funds are distinguished by real stock producers from “long -term capital growth”.

Most active funds are weak index, as we all know. The active circulating investment funds will not be different

seriously? Like analysts in real life and conservative managers who increase my value in ETF-instead of only exceeding performance or Nikkei? definitely. But wait, there is more as phone marketing ads say.

Unlike the old investment funds that are only priced and charged like a single -century, the active traded investment funds in stocks such as stocks and a third of price can also be traded. It seems very amazing to be real, right?

To find out this, I launched Excel and downloaded all New Ishares World Equity ETF, as well as her weights (as of January 21 in the afternoon after running along the beach).

Besides, I did the same for the negative version: the world of ISHARES CORE MSCI. Both have a MSCI world as a standard. Core seeks to track it, “the active ETF aims to develop” your investment “.

I noticed their total expenses as well. The standard ETF is 0.2 percent annually and one-per cent is 0.3 percent. At first glance, many readers considered the last deal.

Active management and superior returns for 10 other basis points? The madness seems to refuse when he puts like this. In addition, you can trade inside and outside the active ETFS whenever you want.

The problem is that active traded investment funds will not make you more money, on average. What they will do is accelerate the disappearance of the active boxes in the old school-the type you are used to running 50 to 100 basis points. Mostly, although it is designed to increase ETF investors.

Let me explain. Most active funds are weak index, as we all know. The active traded investment funds will not be different. Like, therefore, it is not rational to buy the cheapest product.

Meanwhile, investors who believe in effective markets will continue to purchase the lowest expensive investment funds. But some boxes may be seduced by a new yacht and heck says, these active boxes do not cost much more.

This is the trick to avoid it. Take ISHARES boxes, for example. The activist still has more than 400 possessions, which – from paradoxes – are almost the number of shares you need to keep in order to ensure that the index does not perform, as I am Previously. It is a negative box, in other words.

Each of the active and basic circulating investment funds have nine -identical names. They are also in the same order completely, with small exceptions depending on when you look. Inaccurately, none of the active exposure is more than 0.6 percent more or less than the negative equivalent.

In fact, the most dangerous bets in the entire active wallet are 0.63 percent of weight gain. amazing! Radical range to raise Bank of America from 23 in the basic box to 10. ABB was transferred from 141 to 121!

What about those terrible companies that are claimed are very clear to active fund managers to exclude them? Berkshire Hathaway is the largest weight loss mode in the active ETF when minus 0.55 percent against the basic box.

Hold nothing, then? ER, No – the active box still has 0.3 percent, although Berkshire is the least favorite stock. The largest jobs are less than weight loss – Visa and Exxon Mobile – smaller. But not zero.

Active Investment Funds will say this is to reduce risk. Good, but not to the point that this money mainly is the trackers of the index. And active managers cannot overcome the index even if they risk more risks.

No, active traded investment funds revolve around paying fees. And like provoking water for $ 5 for $ 4 – many people will conclude: Why not?

The author is a former wallet manager. Email: Stuart.kirk@ft.com; x: studtkirk__