An established investment advisory firm, Sheaff Brock manages the wealth of high-net-worth individuals. Ranked one of 2016’s Top 300 Financial Advisors by Financial Times, Sheaff Brock uses a “core and satellite” investment approach.
The core and satellite strategy combines active and passive investing. The core involves investing passively in asset classes that follow indexes with the aim of replicating overall market returns, while the satellite aspect involves actively investing a percentage of managed assets with the goal of outperforming the market.
Many investors often wonder which is the better approach to investing, passive or active. Passive investing focuses on the long term. Investors buy into an index fund that tracks a major index such as the S & P 500. These funds deliver returns that mirror the overall index performance.
Active investing is quite different. Investors focus on shorter-term trades with the goal of achieving higher-than-market returns. It involves much deeper analysis into qualitative and quantitative data to take advantage of trends, irregularities, and anomalies in the markets.
Through the core and satellite strategy, investors can enjoy the best of both investment approaches.