The latest research confirms what many other studies have
demonstrated: that investors should put their money in low cost index funds and
skip higher cost actively managed mutual funds.
ETF manager Rick Ferri compared passive (index) funds against 5,000
randomly selected active portfolios using 32 different investing strategies. “The
indexing solution won 82.9% of the time on average, and in the small percentage
where active funds outperformed the median outperformance was 0.5%.” According
to Ferri, “The bottom line is a fee. Fees matter.” And if taxes were added into the mix, the
advantage for indexing over actively managed funds would be even greater. Read
a bit or detail or delve into the full study with this link:
http://www.thinkadvisor.com/2014/01/28/how-does-passive-beat-active-let-me-count-the-ways?page_all=1
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