“A billion here, a billion there, and pretty soon you're talking real money.” Used for decades to describe the perceived high and ever-increasing level of government expenditures, this memorable phrase of unclear origin may also offer insight for those building investment portfolios today. Consider a slightly modified version: Potential loss here, potential loss there, and pretty soon you're talking real Risk, with a capital “R”.

European Smart beta ETF market flows are still positive in the second quarter of 2015, but growth has decelerated compared to Q1 2015. NET NEW ASSETS (NNA) year to date (30/06/2015) amounted to EUR 2.3 billion, i.e. 60% of the 2014 NNA within the first half of the year. Total assets under management are up 41% compared to the end of 2014, reaching EUR 10.9 billion.

It is time to take a neutral stance on equities as company earnings don't keep up with share price rises and volatility is expected to get worse, says Robeco's head of asset allocation.

According to Rory Bateman,head of european equities at Schroders, volatility in markets is likely to continue for an extended period until the ramifications of a potential Greek exit from the euro are fully understood. QE and current valuations could provide some downside protection for European equities...

Just about everyone from Warren Buffett on down to the casual investor is picking a side or weighing in on the debate over passive vs. active investing. But it's not really an either/or proposition. The better approach is to understand how to most effectively incorporate each of these styles into creating a durable portfolio – because there are advantages to both.