Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.
"Index fund beats 49% of actively managed funds over one year" isn't a news flash, especially in small caps where a manager should make a difference (hopefully one significantly greater than the funds ER). In small caps (actually in any cap), I want my manager to do much better in down markets; but, if he or she is any good, I'd like an ER's worth of outperformance in up markets.
I think index funds are the right choice for a taxable account unless you can really pick'em.Unless you love to pay taxes on distributions every year you should restrict active funds to tax sheltered accounts.
Comments
In small caps (actually in any cap), I want my manager to do much better in down markets; but, if he or she is any good, I'd like an ER's worth of outperformance in up markets.