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Importance of US government policy that preserves investor choice

Aug 11, 2026 | Blog

As markets continue to evolve, conversations around how Americans invest and plan for the future are reaching Capitol Hill. Our strategic partners at Capital Group were able to share their thoughts…

“Opportunities to speak before Congress are rare. So when U.S. lawmakers invited Capital Group Vice Chair Jody Jonsson to share her perspective on aligning public policy with shifting market conditions, she welcomed the chance.

Here are four insights Jonsson shared in her testimony to lawmakers:

1. Investor choice is essential
Investors have different objectives, life stages and risk tolerances, and public policy should preserve their ability to choose the approach that works best for them. That’s why both active and passive strategies have an important role to play.

2. Cheaper is not necessarily safer
One common misconception is that passive investing is safer than active investing. While passive investments may be cheaper, with lower fees on average, lower fees don’t necessarily mean better outcomes.

3. Active management supports healthy capital markets
Active investing also plays an essential role in the healthy functioning of markets. First, active managers play a critical role in price discovery, which is the process by which markets determine the value of a security at any given time. Because active managers make buy-and-sell decisions based on their assessment of a company’s prospects, risks and valuation, they help market prices reflect underlying economic realities.

4. Financial advice remains critical to investor success
During periods of market volatility, advisors can help investors manage their emotions and avoid making rash decisions that could potentially derail their long-term investment plans.

Click here to read the full article and watch Jonsson’s full testimony.

We, at E2E, are believers in BOTH passive and active management of your investments. Passive strategies are required to follow their directives even though, at times, they expose investors to company stocks at their market highs. Good active strategies balance these tendencies.

Time to get a second opinion on your portfolio? We’re here to help you take a closer look. Schedule a complimentary consultation and get your side-by-side analysis.

And as always, your weekly market update is here.

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