Touchstone: Active Share Funds a Better Way to Beat the Volatility

Index fund investors worried about the recent volatility in stocks should consider switching to Active Share funds, said Tim Paulin, Senior Vice President for Investment Research and Product Management at Touchstone Investments. Active Share is a holdings-based measure used to determine how different a portfolio is from its benchmark. Paulin added that owning Active Share funds is also a good way for investors to avoid owning so-called 'closet-index' funds. Finally, Paulin said the Touchstone Small Cap Value fund has done very well this year relative to its benchmark.