Tuesday, March 10, 2015

Beat the Market With These 9 Sector ETFs

It’s pretty easy to understand the appeal of indexing, particularly after a year like 2014. Less than one out of five active mutual fund managers beat their respective benchmark last year. And those few that did beat their benchmarks did so by a pitiful margin of just 1.8% on average.
Even worse, many fund managers are really just closet indexers. There is too much career risk in going against the grain, so most large fund managers tend to buy the same stocks and sink or swim together. So … why pay steep fees to active managers for underperform when you can buy an index mutual fund or ETF with expense ratios of 0.1% or even lower in some cases? (more)

Please share this article

No comments:

Post a Comment