In looking for stock images, this one struck me as a good choice because it represents what is going on with active management.
That dude in the suit with the hand swooping in is the portfolio manager (or active manager) or someone who will make "active" or conscious decisions to change what's in front of them.
For example, he might be a US Large Cap portfolio manager who is benchmarked against the SP500. In this analogy that Jenga board would start with the full list of companies in the SP500, then he would have to come in and 'regigger' those weights such that perhaps some securities are excluded altogether and others are overweight relative to the benchmark.
Regardless, the decision to you as an investor is: do I trust that persons investing acumen enough to PAY him to do this? Or am I OK with just accepting the unaltered stack of blocks (like an index) and not pay anyone a fee to mess with them.
To check out an interesting tool to understand if its a better time for one or the other check out THIS LINK of a Warren Buffet famous bet.
Also check out some scholarly articles on Black-Litterman or Treynor-Black models.
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