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Swedroe: 2018’s Active Vs. Index Scorecard

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  • Swedroe: 2018’s Active Vs. Index Scorecard

    Summary: active funds got their butts kicked again in 2018 by passive/index funds. And really suck bad over the last 10 years. This is why I invest in index funds.

    Nearly 70% of domestic funds underperformed the broad benchmark in 2018, according to the SPIVA report.

  • #2
    So just like every other year basically.
    Steve

    * Despite the high cost of living, it remains very popular.
    * Why should I pay for my daughter's education when she already knows everything?
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    • #3
      Looking back over a 15 year period, which includes the great recession as well as our current bull market 92% of large cap funds lagged a S&P 500 index fund, and 95% of mid cap and 93% of small cap funds lagged their respective index. Pretty clear that using index funds is the best approach to investing for the long term.

      I'd be interested in seeing this evaluation taken a step further with the inclusion of risk adjusted returns. Though I'd speculate it would reinforce the use of index funds.
      Last edited by srblanco7; 10-27-2019, 03:56 AM.
      “Compound interest is the eighth wonder of the world. He who understands it, earns it … he who doesn’t … pays it.”

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