Active investors thrive on market volatility, identifying undervalued stocks or shorting overvalued ones for potential profit. However, the market is often a precise pricing mechanism.
Passive investing via ETFs like SPY and VTI serves as a strategic move for those lacking resources to analyze countless market data points, allowing investors to own the entire market.
Even active investors should consider adding ETFs to their portfolios. These funds provide a balance, offering portfolio insurance and stabilizing returns while managing risks effectively.
For long-term returns in line with the overall market, inexpensive index funds like SPY and VTI can be a solid choice, complementing more aggressive trading strategies.
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