I have a really good friend that works for one of those big brokerage firms that spends millions on TV commercials. You know them - they have three initials and recently got busted for having a bunch of offshore clients that were evading taxes (and they immediately rolled over and gave up the names to the IRS - so much for the vaunted secrecy of those Swiss accounts - but, I digress). He's a smart guy. He teaches CFP courses at the university level. We used to argue about active versus passive management until he finally gave up because, well, he was wrong. He now admits it.
But... and it's a BIG but, he says that he will continue to offer his clients actively managed portfolios because he does not believe that any client will pay him to construct and maintain a portfolio based on strategic asset allocation and passive asset class exposure even though he knows it's the right way to invest and it's how he invests his own money!
You see, the big brokers think you're too ignorant to know that they are selling you a lie. They think you don't know enough to appreciate what really works. And, you know what? For the most part, they're right. But, it's not because you're stupid. It's because you are horribly misinformed and fed a constant diet of marketing hype. Active management is expensive. It makes lots of money for the peddlers. Passive management works a lot better, but it's inexpensive. Oh, were you under the impression that your broker has your best interest in mind and would never recommend what pays him more?