What is the Difference Between Passive and Active Investing?
Passive Investment strategies track the returns of an index such as the S&P 500®. These strategies typically hold each of the indices' components proportional to their representation in the index. The passive investment method requires little to no trading unless the index changes in composition.
Passively managed funds are long-term investment vehicles that offer diversification, low turnover, are tax efficient and feature low fees. A good example of Passive fund is one of the largest equity mutual funds, the Vanguard 500®. Many retirement accounts use this proven strategy to participate in the market. Passive Investment Strategies have performed well in past markets.
In contrast, Active Strategies seek to earn higher returns by trading individual securities. Active Strategies usually generate more trades, trigger brokerage expenses and management fees in exchange for potential higher returns.
What does Stock Circles offer?
At Stock Circles, we offer Active Investment Strategies to suitable investors. If you observed that markets are uneven and volatile and that it becomes harder to find market movers, you are correct. In 2018, the S&P500® (SPY) posted a negative return and so did many Passive Strategies.
Smart Auto-Trading, our investment system, uses Street Sentiment, a proprietary algorithm designed to surface market movers. If you believe that capturing opportunities when they presents themselves holds the potential to improve returns, Smart Auto-Trading could be an appropriate investment system to look into.
With Street Sentiment, the investor benefits from accessing a potent Artificial Intelligence generated signal designed to monitor and invest in the S&P 500®, Nasdaq 100 and Dow 30. Street Sentiment powered model strategies outperformed the S&P 500® SPDR Fund Trust (SPY) consistently since 2016.
In the last 5 years, we engineered an active investment system designed to take advantage of Street Sentiment. We select elite strategies out of hundreds of actively strategies running on our platform. All our elite strategies are tested in a variety of markets to ensure quality and consistency of execution.
- Finds market movers based on Street Sentiment
- Trades highly liquid Large Cap US Stocks
- Acquires systematic consistency
- Reduces emotional bias
- Affords flexible terms
Smart Auto-Trading is not for everyone. It produces short-term trades that may be taxed at a higher rate than long-term Passive Strategies. Make sure to consult with your CPA to understand Smart Auto-Trading's benefits and how it may impact your broader financial situation.
About Stock Circles
Stock Circles Inc., is an SEC registered Investment Advisory firm headquartered in Los Angeles, CA operating an investment robot that uses Artificial Intelligence at its core to auto-trade components of the S&P 500®, nasdaq 100 and Dow 30. The Company‘s mission is to simplify stock investing using technology.
If you are interested in exploring the potential associated with Street Sentiment powered strategies, please contact us at firstname.lastname@example.org
General Disclaimer: Remember that Stocks trading involves substantial risk of loss and is not suitable for every Investor. The valuation of stocks may fluctuate, and, as a result, Investors may lose their original investment. If the market moves against you, you may sustain a total loss equal to the amount you deposited into your account. You should not auto-trade unless you fully understand the nature of the transactions you are entering into and the extent of your exposure to loss. If you do not fully understand these risks you must seek independent advice from your financial advisor or CPA. Trade only with risk capital; that is, trade with money that, if lost, will not adversely impact your lifestyle and your ability to meet your financial obligations. In no event should the content of this report be construed as an express or implied promise or guarantee. Actual results are influenced by market conditions and/or service availability and accuracy. Unique experiences and past performance does not guarantee future results. Any content featured in this article should not be relied upon as advice or construed as providing recommendations of any kind. It is your responsibility to confirm and decide how best to use the provided material. None of the content published in this article constitutes a recommendation that the above strategy is suitable for any specific person.
HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED STRATEGIES IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.