"Index Funds vs. Mutual Funds"

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Taylor Larimore
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"Index Funds vs. Mutual Funds"

Post by Taylor Larimore »

Bogleheads:

A recent Forbes Article reinforces The Bogleheads Investment Philosophy of using index funds. Look at these recent statistics:
Over five years, just 13.49% of actively-managed funds outperformed the S&P 500.

Over 10 years, only 8.59% of actively-managed funds outperformed the S&P 500.

*Data as of December 31, 2022
Thank you, Mr. Bogle.

Best wishes.
Taylor
Jack Bogle's Words of Wisdom: "Don't look for the needle. Buy the haystack."
"Simplicity is the master key to financial success." -- Jack Bogle
moneywise3
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Re: "Index Funds vs. Mutual Funds"

Post by moneywise3 »

Classic ❤️💰👍
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Charles Joseph
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Re: "Index Funds vs. Mutual Funds"

Post by Charles Joseph »

A great reminder of the absolute futility of active investing. My history of underperformance is also a testament. I am now proud of and grateful for my dirt-cheap Boglehead indexed portfolio.

Thanks Taylor and best wishes to you!

Charles Joseph
"The big money is not in the buying and selling, but in the waiting." - Charles Munger
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Brianmcg321
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Re: "Index Funds vs. Mutual Funds"

Post by Brianmcg321 »

I don't get the title. Index funds are mutual funds.
Rules to investing: | 1. Don't lose money. | 2. Don't forget rule number 1.
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CRC_Volunteer
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Re: "Index Funds vs. Mutual Funds"

Post by CRC_Volunteer »

Brianmcg321 wrote: Fri Mar 24, 2023 8:14 pm I don't get the title. Index funds are mutual funds.
You can have actively managed mutual funds.
"Let me explain. No, there is too much. Let me sum up." (Inigo Montoya) | | 65/30/05 | 53% VTSAX | 12% VTIAX | 30% VAIPX | 5% CASH
placeholder
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Re: "Index Funds vs. Mutual Funds"

Post by placeholder »

CRC_Volunteer wrote: Fri Mar 24, 2023 8:28 pm
Brianmcg321 wrote: Fri Mar 24, 2023 8:14 pm I don't get the title. Index funds are mutual funds.
You can have actively managed mutual funds.
Yes but it's like saying "beef vs. meat".
Makefile
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Re: "Index Funds vs. Mutual Funds"

Post by Makefile »

placeholder wrote: Fri Mar 24, 2023 8:43 pm
CRC_Volunteer wrote: Fri Mar 24, 2023 8:28 pm
Brianmcg321 wrote: Fri Mar 24, 2023 8:14 pm I don't get the title. Index funds are mutual funds.
You can have actively managed mutual funds.
Yes but it's like saying "beef vs. meat".
Index funds and mutual funds due seem in the broader financial media as imprecise terms for index mutual fund and actively-managed mutual fund. It comes up on the Reddit /r/bogleheads a lot also from new posters, obviously hopelessly confused ones. Even financial media will sometimes talk about the shift from "mutual funds" to ETFs as if it's coupled to abandoning an actively-managed strategy.
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Brianmcg321
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Re: "Index Funds vs. Mutual Funds"

Post by Brianmcg321 »

placeholder wrote: Fri Mar 24, 2023 8:43 pm
CRC_Volunteer wrote: Fri Mar 24, 2023 8:28 pm
Brianmcg321 wrote: Fri Mar 24, 2023 8:14 pm I don't get the title. Index funds are mutual funds.
You can have actively managed mutual funds.
Yes but it's like saying "beef vs. meat".
Exactly
Rules to investing: | 1. Don't lose money. | 2. Don't forget rule number 1.
dcabler
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Re: "Index Funds vs. Mutual Funds"

Post by dcabler »

Taylor Larimore wrote: Fri Mar 24, 2023 1:29 pm Bogleheads:

A recent Forbes Article reinforces The Bogleheads Investment Philosophy of using index funds. Look at these recent statistics:
Over five years, just 13.49% of actively-managed funds outperformed the S&P 500.

Over 10 years, only 8.59% of actively-managed funds outperformed the S&P 500.

*Data as of December 31, 2022
Thank you, Mr. Bogle.

Best wishes.
Taylor
Jack Bogle's Words of Wisdom: "Don't look for the needle. Buy the haystack."
I'm guessing you meant the title to be something like "Index Funds vs. Active Funds"...

Cheers
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CRC_Volunteer
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Re: "Index Funds vs. Mutual Funds"

Post by CRC_Volunteer »

dcabler wrote: Sat Mar 25, 2023 4:25 am
Taylor Larimore wrote: Fri Mar 24, 2023 1:29 pm Bogleheads:

A recent Forbes Article reinforces The Bogleheads Investment Philosophy of using index funds. Look at these recent statistics:
Over five years, just 13.49% of actively-managed funds outperformed the S&P 500.

Over 10 years, only 8.59% of actively-managed funds outperformed the S&P 500.

*Data as of December 31, 2022
Thank you, Mr. Bogle.

Best wishes.
Taylor
Jack Bogle's Words of Wisdom: "Don't look for the needle. Buy the haystack."
I'm guessing you meant the title to be something like "Index Funds vs. Active Funds"...

Cheers
Taylor quoted the article name for the subject name...
"Let me explain. No, there is too much. Let me sum up." (Inigo Montoya) | | 65/30/05 | 53% VTSAX | 12% VTIAX | 30% VAIPX | 5% CASH
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Candor
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Re: "Index Funds vs. Mutual Funds"

Post by Candor »

Yes, but this data is only up to the end of 2022. I have heard 2023 is a stock pickers market. :twisted:
The fool, with all his other faults, has this also - he is always getting ready to live. - Seneca Epistles < c. 65AD
GreatLaker
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Re: "Index Funds vs. Mutual Funds"

Post by GreatLaker »

Candor wrote: Sat Mar 25, 2023 10:20 am Yes, but this data is only up to the end of 2022. I have heard 2023 is a stock pickers market. :twisted:
2023 is a cyclical bear in a secular bull market. You don't want to be indexing in a market like this.
(Crazy stuff advisors say) :happy
1moreyr
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Re: "Index Funds vs. Mutual Funds"

Post by 1moreyr »

Thank you for posting Taylor.... Ironically, I read a similar article in the early 90s in forbes! no less and have pretty much invested only in index funds based on this logic since then !

I didn't even know what a BH was but I knew my odds of picking the best mutual fund manager was going to be no better than picking the best individual stock..... It made sense then and it does now..
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