Yale’s Swensen Says Index Funds Best Plan for Most Investors

David Swensen, who pioneered an investing style that helped endowments beat markets by using alternative assets such as private equity and real estate, said investors who don’t have access to top managers are best off using index products.

“There are two sensible approaches to investing -- either 100 percent active or 100 percent passive,” Swensen, the chief investment officer of Yale University’s $19.4 billion endowment, said today at the John C. Bogle Legacy Forum hosted by Bloomberg Link.