Greetings! Ive been watching from the side lines for a few years, and finally decided to join in on the great conversations. My financial advisor, who a portion of my 401k is handled by, gave me the following response when pressed about high fee , actively managed funds vs. passive index funds. I know who my unction says, but does his statement have any validity to you all?
"active (non-index funds) are superior in asset classes that are less efficient like MLP’s, emerging markets, etc. and that investors should seek out passive/index providers in efficient asset classes like US stocks, treasury bonds, etc. Our portfolios are constructed based on that philosophy. "
Thoughts?