francoamerican

The Fall of Index Funds

Go back and pick a fund that has done well and declare active management victorious.

Let's talk about the Wellington fund. It's a large value fund with 30-40% fixed income. Benchmark it against a LV index fund with 30-40% fixed income then try to identify the benefits of the Guru's. At least the Wellington fund has a low expense ratio which is probably one of the main reasons it has done well (70 bps less than the average equivalent fund)

And what if YOU as an individual pick the "wrong" actively managed fund? (Since you are basically relying on yourself to have greater expertise than the "dumb" managers out there to be able to pick them out and avoid them)

Here's an article with a little more meat to it that may lead you to a different conclusion:

www.fundstrategy.co.uk...

The nice thing about articles like yours is that they make me feel smart.