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How Top Active Mutual Fund Managers Outperform vs. Passive Funds
One of the main issues I have when I read articles that compare the S + P indexes to actively managed funds is that many managed funds have a mix of US, International, some cash and bonds and some have derivatives. So its not always comparing apples to apples. We all know that you can do very nicely just investing in a few index funds over the long haul. It seems most people that come to MFO do not invest that way. Otherwise, there would be little cause to have a forum such as this.
I have a mix of stocks, managed funds and etfs for my equity portion of my portfolio, but do not own S +P, total market, small or mid cap or international indexes. I do own etfs that help enhance my funds, more than half of which along with my managed funds ytd do exceed the basic benchmark of the S + P. Granted, some are sector or foreign, but the reason I have them is to provide balance to my core holdings so when some areas zig others will zag. They won't always exceed that benchmark, for every dog has its day. Besides, I really like studying, learning and watching the market with all its drama and gyrations. I do play with about 5% of my portfolio with more speculative stocks, but never exceed that 5%. More often than not, they do make money, but not always. I suspect many of us invest this way too.
I am finding more and more that the S&P is becoming less important in tracking fund performance and the Nasdaq is becoming more of the comparison standard. It's a slow and quiet change.
Comments
I have a mix of stocks, managed funds and etfs for my equity portion of my portfolio, but do not own S +P, total market, small or mid cap or international indexes. I do own etfs that help enhance my funds, more than half of which along with my managed funds ytd do exceed the basic benchmark of the S + P. Granted, some are sector or foreign, but the reason I have them is to provide balance to my core holdings so when some areas zig others will zag. They won't always exceed that benchmark, for every dog has its day. Besides, I really like studying, learning and watching the market with all its drama and gyrations. I do play with about 5% of my portfolio with more speculative stocks, but never exceed that 5%. More often than not, they do make money, but not always. I suspect many of us invest this way too.
Anyone else sensing the same?