Sentences with phrase «of closet index funds»

And some mutual funds, especially those that are truly active funds instead of closet index funds, actually have a chance of beating the index and can do so over extended periods of time.

Not exact matches

If the active share of a fund is close to zero, then the fund is effectively a replica of the index, hence the term «closet indexer.»

In other words, the vast majority of professional investors are just closet index funds charging high fees.

There are still trillions of dollars captured by hedge funds, closet indexing funds, high fee 401K plans and high fee investment advisors.

Closet indexing is the result of active managers owning the market like an index fund, but charging active management level fees.

As of 2009 when the below chart ends, roughly half of mutual fund assets are indexed or closet indexed [ii].

Your investments are too important to leave it at the mercy of the market (index funds or closet index funds)

Thirteen major U.S. mutual fund companies have agreed to begin publishing data about how actively their funds are managed, following an investigation by the office of the attorney general of New York (NYAG) into the practice of «closet indexing,» NYAG announced Thursday.

A closet index fund is when the fund manager is simply trying to follow an index, which is a huge rip - off for you, since you could instead just buy an actual index fund and pay an MER of 0.5 % instead.

However, as a generalization I think it's pretty fair to say that the vast majority of mutual funds are closet - indexing leaches that do no one any good (except for the management companies who charge the high fees).

In this July 2006 research note titled Come out of the closet, or, show me the alpha James features a study that suggests closet indexing accounts for nearly one third of the US mutual fund industry.