Sentences with phrase «higher than index funds»

An extremely overdiversified active fund manager is called a closet indexer: he or she holds a portfolio that closely resembles the benchmark, while charging fees that can be 20 times higher than an index fund.

The entire group of investors will earn the market rate of return, and the average will be negatively offset by active management fees that are higher than index fund fees.

Stock funds average expenses are.90 %, considerably higher than indexed funds and if you buy funds with front end loads you could pay as high as 5 % or more just for this one time charge.

Not exact matches

It's being leveraged by high - profile artists to promote their work, has more than 30 million users, and recently announced a $ 70 million round of funding led by top Silicon Valley - based VCs Sequoia Capital, Kleiner Perkins and Index Ventures.

It's worth noting that the cryptocurrency fund fees are still much higher than comparable passive stock market funds, with S&P 500 index funds priced as low as.05 % of assets.

Actively managed funds may have higher portfolio turnover than index funds.

The complaint notes that before the investment committee changed the Intel TDP allocations in 2011, the fees for the Intel TDPs ranged from 65 basis points to 71 basis points — already higher than index - based target - date funds such as those offered by Fidelity.

For example, a risk index of 1.30 for a fund indicates that it is 30 % more volatile than the typical fund in its category and should therefore have a higher return than average.

I highlighted the 1.08 percent average expense ratio of «similar funds,» which is 1.03 percentage points higher than Vanguard's advertised expense ratio.5 The Investment Company Institute finds an average expense ratio of 0.89 percent for actively managed equity funds, versus 0.12 percent for equity index funds, or a 0.77 percentage point difference.

«In a horrible, truly worst - case scenario, a high - quality bond index fund is still less risky over the course of a year than stocks are in one day,» says the investment adviser Allan Roth, founder of Wealth Logic in Colorado Springs, alluding to the 20 percent decline in the Standard & Poor's 500 - stock index on Oct. 19, 1987.

I've read that lump sum investing in index funds yields a higher dollar outcome than DCA.

A managed fund charges higher fees than you'd pay for an index fund, and you're probably not going to do as well.

Mutual funds have much higher management fees than index funds and almost always will make you less money over longer periods of time.

Even though the S&P 500 is less than 3 points above its March peak, and the index remains lower than its level of 5 years ago, and has underperformed T - bills for the past 7 years, I realize that the chatter about «4 year highs» can make it seem frustrating that the Strategic Growth Fund is well hedged here.

By purchasing these companies after a price decline, we find we are able to control risk in the portfolio as these investments often have less downside while offering a decent potential return.The U.S. Equity Fund seeks to invest in companies with a lower Price to Book Ratio, lower Price to Earnings Ratio and higher Dividend Yield than the S&P 500 index.

In reality, any fund with an active manager (s) has higher costs than an index fund.

First, the Strategic Growth Fund generally holds a different portfolio than the S&P 500, weighting some stocks and industries higher and some lower than reflected in the index.

This year, Buffett talked at length about how most investors are better served in low - cost index funds rather than high - fee hedge fund investments.

While enhanced index funds may offer an opportunity for higher returns, they typically expose you to the risk of greater losses than their more traditional index funds.

In addition, I don't necessarily believe I can generate higher returns with individual stocks than with index funds.

That's still higher than the fees for my index funds, right?

Given the fact that a high percentage of managed funds don't do better than index funds, especially over the long run, the chances that any individual will do so seem rather low.

However, if you have active managers that are doing little more than mimicking a popular index, such as the S&P 500, the higher fees associated with their funds are an unnecessary drain on performance.

For example, instead of buying all the stocks in the S&P 500, a quant fund manager might select a limited number - perhaps 250 - that the research team indicates will provide a higher return than the index as a whole.

In contrast, enhanced index funds can weight undervalued stocks more heavily, include a larger proportion of securities in higher - performing sectors, or use other investment strategies to try and achieve a better return than the index it tracks.

We have other business with Altamira and I have been happy with them because although their index fund MERs are a bit higher than TD (most are 0.5 % I think), I find their online system, phone system, and monthly reports much easier to read / use.

As of January 30, 2014, the fund's annualized 10 - year return was indeed 1.25 % higher (8.15 % vs. 6.90 %) than that of the S&P 500 ® total return index.

That fund has, for the last five years, generated annual returns.34 % greater than S&P 500 index funds, due mostly to the higher yield.

Our average fees are high and many actively managed mutual funds are no more than expensive index funds that replicate their benchmarks, less a 2.5 % fee.

The appeal of preferred funds is they offer higher yields than bond ETFs, explains Alfred Lee, vice-president of BMO Global Asset Management and lead manager of the bank's Laddered Preferred Share Index ETF (TSX: ZPR).

Historically, a broadly diversified portfolio of stocks (now easily obtained with one or two index mutual funds) has usually provided much higher long - term returns than bonds or cash, but with inevitable, dramatic ups and downs (volatility) that can be very stressful.

The Fund may have a higher portfolio turnover than funds that seek to replicate the performance of an index.

In my opinion, any index fund that keeps revenue from securities lending should first ensure its tracking error is no higher than its management fee.

I read a lot of books before I started investing three years ago, and the data clearly show that indexing usually leads to higher returns than typical mutual funds.

So it's simply not true to say that actively managed funds have no chance of earning higher returns than index funds over the long term.

The most common measure of the prime rate, the Wall Street Journal Prime Rate is an index that is 3 points higher than the federal funds rate.

Index funds have much lower fees because they are run by computers using formulas, which cost less than high - profile fund managers.

So active funds typically have a higher expense ratio than a simple passive index fund.

Variable annuities also often have higher annual costs and fees than do IRAs and the investments available through them (such as low - cost index mutual funds and ETFs, or exchange traded funds).

With index - tracking exchange - traded funds charging fees that are far less than actively managed mutual funds, the higher - cost investment options that AllianceBernstein (NYSE: AB), Hartford Financial (NYSE: HIG), and other active - management firms have within some 529 plans come under greater pressure from the state board established to oversee the plans.

These multinational funds don't have long return histories, but the experts who follow them believe that combining U.S. and international real - estate investments will produce higher returns than the S&P 500 index, along with currency diversification.

Mutual funds charge annual fees regardless of the fund's performance, and the higher a fund's expense ratio, the more the mutual fund manager must outperform the market to offer investors a better return than low - cost, index - tracking funds which are not actively managed and have fewer operating expenses.

A person whose portfolio features higher - risk investments than typical index funds and bonds needs to be more conservative when withdrawing money, particularly during the early years of retirement.

This explains a good deal of the secret sauce of index funds — the average actively managed fund has an expense ratio 10 to 15 times higher than that of a comparable index fund.

Debt does not necessarily mean high risk, and investing in index funds over a long period is less risky than your home.

As a passive investor, I generally invest in high quality, low cost index funds and ETFs that try and mirror the market rather than try and beat it.

Expenses tend to be higher for stock funds than bond funds, and higher for actively managed funds than index funds.

Indeed, a broad swath of high - yield bonds that includes smaller issuances has steadily performed better than an index of the biggest, most - traded notes tracked by passive funds.

Indeed, a new Morningstar report comparing index funds and actively managed portfolios found that while index funds generally outperform their actively managed peers, those active funds with low expenses tend to shape up much better vs index portfolios than high - fee actively managed portfolios.

So the overall yield of each fund is less than 2.5 % — not much by historical standards, but still higher than the yield offered by the broader S&P 500 index.