For decades, Wall Street firms have marketed their ability to beat the market with their active investing strategies. The claim hinged on each firm’s ability to “pick winners,” stocks whose returns would beat the market’s. This market-beating ability would, in turn, justify the firms’ high fees. But in fact, active management rarely provides better investment results than what could be earned simply by …
Why We Don’t Use Active Funds
We’ve never believed that “actively managed” investments can reliably outperform index funds over longer-term timeframes. (NOTE: when we use the term index funds, we mean mutual funds and Exchange Traded Funds (ETFs).) Turns out, the evidence is on our side: over the past decade, the vast majority of actively managed funds – large-cap, mid-cap, and small-cap alike – underperformed their benchmark …
What’s the Most Important Thing to You?
Chances are, money was not the first thing that crossed your mind. Make no mistake: money is extremely important in our lives and our world: it shapes our behavior, often drives our decision-making, and colors the way we think and speak. But money, at core, is just a tool. We don’t earn money for money’s sake. We do it to …