Sentences with phrase «than index funds»

I've several times repeated my advice on investing in individual stocks: do it if you enjoy it, but don't expect to do better than index funds over the long haul.
I'm using ETFs for the stocks, since they have lower fees than index funds.
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.
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.
Of course, but they are the exception, not the rule, and of those who complain, maybe one in five can do better than an index fund over the long haul.
Most of my portfolio is in individual stocks which might not do any better than index funds in the long run, but they have done pretty well for me so far.
But for somebody with a reasonably large portfolio, I believe you can effectively create your own index fund for less cost than an index fund.
The difference is that a systematic approach buys individual stocks rather than index funds.
I won't ever be more invested in individual stocks than index funds, as tempting as it might be at times.
We all know that annuities are more complicated than index funds.
Keep in mind that not all ETFs are cheaper than index funds and trading and annual account fees can vary quite a bit between institutions.
There is no evidence that active managers, on average, have been able to produce better performance than index funds in down markets.
If your brokerage charges $ 29 per trade this will add an extra $ 116 to your annual costs — which makes the ETF option more expensive than the index funds.
My goal is to generate some impressive turns over multiple decades while taking a passive approach — spend a little more time than index fund investing for much greater returns.
The sales pitch was immediately fairly strong explaining how they can create a better «fund» than index funds by creating a portfolio of individual stocks.
A portfolio of diversified dividend paying stocks can actually be cheaper to own than an index fund.
What are people's thoughts on advisors that recommend anything other than index funds?
Considering the fact that the clear majority of active funds have less risk than index funds, this is a horrible comparison.
That means the hedge funds have to do far better than the index fund just to break even.
I recommend them as a good way to get some technology exposure, as they are more diversified than the index funds.
Although ETFs typically have lower expenses than index funds, you have to pay a commission when you buy or sell them, so you want to minimize trading costs.
A portfolio of private equity and bonds will do about as well as some equity index funds, on average, with a much wider degree of variation than the index funds.
Cash flow from RE affords greater tax benefits than those index funds.
Mutual funds have much higher management fees than index funds and almost always will make you less money over longer periods of time.
Costs — the expense ratios are competitive with most open end mutual funds, but still higher than index funds and ETFs.
ETFs have lower costs than index funds, but the cost to buy and sell can be more expensive.
Using this approach, the threshold where it makes sense to use index ETFs rather than index funds is far lower.
To me, ETFs are a little more complicated than index funds, because they trade like regular stocks, and that might be intimidating if you're new to investing.
Have Balanced funds returned better than index funds over the longer term?
Studies have shown that active stock picking and actively managed mutual funds don't do better than index funds over the long term anyway.
What needs to be demonstrated is whether the 50 % bond, 50 % hand - picked - stock portfolio the advisor is proposing has had greater returns than an index fund portfolio with the same level of risk.
Expenses tend to be higher for stock funds than bond funds, and higher for actively managed funds than index funds.
Actively managed funds may have higher portfolio turnover than index funds.
As a result, actively managed fund are seven and a half times (on average) more costly than index funds.
Stock portfolios should thus do better than index funds if you can just let your System 2 do the thinking, and individual stocks give you other advantages such as better control over timing of realizing gains & losses, etc..
In our view, with investment management fees coming down significantly over the past decade, it is entirely possible for plan sponsors to add skilled active management to their core lineup, at lower cost than in the past and with potentially broader opportunities than index funds alone.
John Bogle's message is sinking in that stock pickers, as a group, can do no better than an index fund before fees, and are destined to do worse after.
EFTs are more tax efficient for the most part than index funds.
You can also observe that the returns generated by an actively managed Large - cap fund like SBI Bluechip are far superior than Index Fund's.
They also have more liquidity than an index fund, as index funds can only be bought or sold once a day, whereas ETFs can be bought and sold throughout the trading day, so it can be a great vehicle for day traders, and much safer than day trading just one stock.
One question that comes up frequently from investors with small portfolios is whether they should buy low cost index fund such as the TD e-series or by ETFs which have lower mers than the index funds but you have to pay a minimum of $ 4.95 per trade.
If you'd rather let someone else do the picking for you that's fine, but it doesn't mean that by picking your own you're going to do worse than an index fund.
No, a recent NerdWallet Investing study found that though actively managed funds earned 0.12 % higher annual returns than index funds on average, because they charged higher fees, investors were left with 0.80 % lower returns.
The Fidelity analysis finds that, on average, active funds lost less than index funds during the last three market downturns.
It's worth mentioning also that some SRIs have significantly higher fees than index funds so if little out - performance is expected than the fees will eat away at the results.
These frictions include management costs and higher taxes; actively managed funds often have higher taxes than index funds held over the same period.
Does that mean that, going forward, the 3 - stock portfolio is a better bet than the advisor's mutual fund portfolio — and that both options are a better bet than an index fund portfolio?
(This happens more often with managed funds than index funds, but still happens occasionally with index funds.)
Actively managed funds may have higher portfolio turnover than index funds.
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