FYI:
Conventional wisdom holds that markets are zero-sum.
However, over the trailing 20 years ended Sept. 30, 2018, the average dollar invested in U.S. stock funds outperformed its blended index and 80% of other funds before fees.
This phenomenon was not exploitable, as investors couldn't purchase every fund and fees consumed all of the alpha the average dollar generated.
In addition, the average dollar's outperformance margin narrowed through the years.
This serves as a reminder that active managers can be skilled in aggregate yet still fail to deliver value. In some respects, the best way to beat the index is to act like the index.
Regards,
Ted
https://www.morningstar.com/articles/901361/why-active-funds-have-outperformed-in-theory-but-f.html
