XOUT Capital CEO David Barse spent nearly 25 years running active value shop Third Avenue Management before embracing a passive, rules-based indexing approach. His new firm, XOUT Capital, is the indexer behind the GraniteShares XOUT U.S. Large Cap ETF (XOUT). So when David speaks about active vs. passive management, ETF investors should take note, as he comes with a deep-seated knowledge from both sides of this issue.
Show Notes

4:00 - David's metamorphosis from active stock picker to passive indexer

7:00 - The XOUT methodology: Using a rules-based approach to determine which companies are likely to cause tech disruption

13:00 - Different kinds of passive investing: Rules-based vs. committee-selected indexes

19:00 - Re-opening the active vs. passive debate

29:00 - Should "seeking alpha" still be a goal for passive indexers?

33:30 - Passive as the new active: What about rules-based indexes with 2,000% annual turnover?

38:00 - Is there a risk that too much passive indexing can blunt the market's "price discovery" mechanism, leading to less efficient markets? 

50:30 - Where active has outperformed passive: Reviewing the recent SPIVA data on mid-cap growth, small-cap growth, real estate and investment-grade intermediate bonds


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