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Low-Cost Index Funds or Managed Mutual Funds?

Should you be using low-cost index funds or managed mutual funds in your portfolio? There’s a new study by the Journal of Financial Planning and the FPA Research and Practice Institute™ showing that more and more advisors continue to use exchange-traded funds.

According to the survey, 87% of advisors say they recommend or use exchange-traded funds with their clients. Now, that doesn’t mean mutual funds are phased out. 73% of advisors still recommend or use mutual funds. To me, these responses make for a good topic for conversation.

It seems like I hear more and more advisors trying to focus on using one investment option or another; they believe in managed mutual funds OR they believe in unmanaged index funds. My stance is, why not both?