Tuesday, June 25, 2013

It's Getting Harder And Harder To Deny The Power Of The Index Fund



From BI:  A new white paper by Portfolio Solutions and Betterment, "The Case For Index Fund Portfolios,"pretty much solidifies all we've ever known or guessed about low-cost, passively managed index funds  –– they can rarely be beaten.

Looking at advanced portfolios holding 10 asset classes between 1997 and 2012, researchers found index fund portfolios outperformed comparable actively managed portfolios a staggering 82% to 90% of the time. And the longer investors held those investments, the better shot they had at outperforming active funds over time. ….

Still not convinced? Even lowering the cost of actively managed fund portfolios couldn't offer a boost significant enough to outperform index funds, the researchers found.


Read more: http://www.businessinsider.com/index-funds-beat-actively-managed-funds-2013-6#ixzz2XEsec7kL

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