Secondary question: what are the percentage of mutual funds that can consistently beat index funds in 10-year windows post-fees? How about those that are index funds masquerading as mutual funds (matching performance)?
You know I’m not actually sure on that, SPIVA doesn’t do rolling 10 year period comparisons as far as I know. My guess is it would be slightly higher than a twenty year period as mutual funds are most of the time very condition dependent when it comes to performance. Growth funds do well during bull markets and value funds do well during stagnant or bear markets.
I would say all index funds are masquerading as mutual funds ;) every year a committee decides what gets included and what gets dropped from the S&P 500, sounds a bit like active management to me. Market performance is more relative than most people think.
Secondary question: what are the percentage of mutual funds that can consistently beat index funds in 10-year windows post-fees? How about those that are index funds masquerading as mutual funds (matching performance)?
You know I’m not actually sure on that, SPIVA doesn’t do rolling 10 year period comparisons as far as I know. My guess is it would be slightly higher than a twenty year period as mutual funds are most of the time very condition dependent when it comes to performance. Growth funds do well during bull markets and value funds do well during stagnant or bear markets.
I would say all index funds are masquerading as mutual funds ;) every year a committee decides what gets included and what gets dropped from the S&P 500, sounds a bit like active management to me. Market performance is more relative than most people think.