Have index funds dropped the proverbial mic, walked off the stage and declared victory in the decades long debate of active vs. passive investment management?  My guest, Sean Lewis, a CFA and Institutional Investment Strategist with BlackRock has a few things to say about the topic!  He does a great job explaining the current market forces driving the continued growth in index investing, questions employers should be asking of themselves to help strike an appropriate balance between index and active management and what asset classes tend to favor index or active management.  Sean also reveals that not all index funds are created the same, a few tips to evaluate them, whether its harder to index equity or fixed income securities and how to tell if you have a plain boring index or one that is trying to do something more than just track their benchmark.  

 

As you listen to our conversation, if it causes you to think a little more about how your retirement plan investment menu is constructed, as a reminder last year we released a three part podcast series on the fundamentals of 401(k) investment menu design.  You can find it by either scrolling through your favorite podcast app or on the web at 401kfridays.com/podcasts.   

 

Guest Bio

Sean Lewis, CFA, Vice President, is an Investment Strategist within BlackRock's US and Canada Defined Contribution group. He is responsible for representing BlackRock's Defined Contribution ("DC") capabilities to institutional investors, investment consultants and advisors. The team also partners with Research and Product Development to evolve DC solutions, and works closely with the distribution teams to provide thought leadership and client analytics. Mr. Lewis' service with the firm dates back to 2013. Prior to joining BlackRock, he was a Vice President at Bank of America Merrill Lynch responsible for managing credit relationships for a portfolio of mid and large-cap clients. Mr. Lewis earned a BS degree in Agricultural Finance from the University of California at Davis in 2009. He is a CFA charterholder.

 

401(k) Fridays Podcast Overview

Struggling with a fiduciary issue, looking for strategies to improve employee retirement outcomes or curious about the impact of current events on your retirement plan? We've had conversations with retirement industry leaders to address these and other relevant topics! You can easily explore over fifty prior on-demand audio interviews here. Don't forget to subscribe as we release a new episode each Friday!