actively managed funds
10 Things You Should Know About Small Cap Funds
This podcast looks at the one year, 15 year and 40 year returns of the Small Cap Index as well as the impact of size, value and diversification on returns. Paul compares the Small Cap Index at Vanguard and DFA, and discusses the problems of active management with this asset class.
Active managers of mutual funds want investors to stop their massive move to index funds. Anytime the S&P 500 outpaces actively managed funds, experts suggest that actively managed funds should start doing better. They fail to mention that their suggestion to move to actively managed funds is a market timing recommendation. In the next breath they say they don't believe in market timing. One thing that makes index investing so effective is that investors no longer have to play the game of "where should I move next?" Listen and learn what this can mean for you.