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@usweekly does not recommend investing in individual stocks. Stick with a broad mix of low-cost index funds. Us Weekly (@usweekly) February 13, 2017 US Weekly is actually chiming inon one of the hottest debates in all of investing: active versus passive investing. In a nutshell, active investing involves picking stocks in an effort to beat stock market averages like the S&P 500 ( ^GSPC ). Passive investing is about tracking the market averages. Active investing comes with higher fees than passive investing. And even worse, active investment strategies have a long and consistent history of underperforming passive investment strategies. Even billionaire Warren Buffett , whos famous for his money-making stock picks, prescribes low-cost index funds to average investors. With the underperformance of active managers becoming increasingly publicized, investors have been moving their money aggressively into passively-managed, low-cost index funds like those offered by and made famous by Jack Bogles Vanguard Group . In fact, a Wall Street Journal report revealed that Vanguards assets under management topped $4 trillion for the first time ever in January. For what its worth, actively managed large cap funds have actually been beating their benchmarks so far this year.

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