FYI: The holy grail for mutual fund investors is the ability to identify in advance which of the very few active mutual funds will go on to outperform in the future.
To date, the overwhelming body of academic research has demonstrated that past performance not only doesn’t guarantee future performance (as the required SEC disclaimer states), but has virtually no value whatsoever as a predictor. The only value of past performance seems to be that poor performance tends to persist—with the likely explanation being high expenses.
Regards,
Ted
http://www.etf.com/sections/index-investor-corner/swedroe-more-active-share-debate?nopaging=1
