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.
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Swedroe: 2018’s Active Vs. Index Scorecard
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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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