From the category archives:
When choosing between companies for constructing an index fund portfolio, my primary considerations would be: Cost of funds, Minimum investment per fund, and Selection of funds (Does this company have enough funds for me to build a diversified portfolio?). What follows is a comparison of index funds from Fidelity, Schwab, and Vanguard. (I also took [...]
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The results are in: S&P has released their Indices Versus Active Funds Scorecard for year-end 2008. And guess what? It’s ugly. Active funds got crushed. The passive index benchmark outperformed the majority of active funds in 9 out of 9 equity fund categories (i.e., large cap growth, large cap value, etc.) for the 5-year period [...]
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While I certainly don’t think that all actively-managed funds are poor investments, I am firmly convinced that most investors would be better off using index funds instead. Why? Because of costs. It’s simple math, really. Let’s imagine that over the next decade, all the publicly owned companies in the world economy earn a grand total [...]
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