Nice infographic from Visual Capitalist highlighting the differences between active and passive investing (you can learn more about this topic through an upcoming podcast with Jim Rowley of Vanguard)

Questions for students:

1. Agree or disagree with this statement (use data to prove your point): Passive investing has become the choice for most investors today.
2. In your own words, what is a passive investing strategy?
3. Which has been more popular since 2008: Active or Passive investing strategies?
4. In your opinion, what is the single biggest advantage of active investing? single biggest advantage of passive investing?
5. Which style of investing are you most comfortable with? Why?

About the Author

Tim Ranzetta

Tim's saving habits started at seven when a neighbor with a broken hip gave him a dog walking job. Her recovery, which took almost a year, resulted in Tim getting to know the bank tellers quite well (and accumulating a savings account balance of over $300!). His recent entrepreneurial adventures have included driving a shredding truck, analyzing executive compensation packages for Fortune 500 companies and helping families make better college financing decisions. After volunteering in 2010 to create and teach a personal finance program at Eastside College Prep in East Palo Alto, Tim saw firsthand the impact of an engaging and activity-based curriculum, which inspired him to start a new non-profit, Next Gen Personal Finance.