If you're prudent about active investing, the worst outcome is lagging
the indexes by a few percentage points a year, which seems to be an acceptable trade - off to many investors.
Not exact matches
Arnott has back - tested his methods on historical data and claims that his fundamental
indexing approach would have outperformed traditional
indexes by more than two
percentage points a year over the past
few decades.
A low - cost, well - managed
index fund should only trail its
index by a
few tenths of a
percentage point.