-
The Numbers Don’t Lie!
Compared to actively managed funds, Vanguard’s index funds have performed miserably. Let’s use the 500 Index — an old Vanguard favorite — as our benchmark.
In 2008, the 500 Index was still beaten by a host of actively managed funds at Vanguard. Take a look:
2008 Return: 500 Index -37.0% Dividend Growth -25.6% Wellington -22.3% PRIMECAP 32.4% And this is no short-term story:
5-Year Average Annual Returns: 500 Index -0.22% Dividend Growth 3.11% Wellington 4.75% PRIMECAP 4.14% The numbers say it loud and clear — indexing is not the best answer. Even though two of the three funds that bested the 500 Index are now closed, you can still buy the best-of-the-best funds set to stomp the 500 Index in the next 12 months. It’s all spelled out in your Action Plan for Vanguard Investors.
Why Index Funds Are NOT the Best Answer
Article printed from InvestorPlace Media, http://www.investorplace.com/2008/04/mutual-fund-indexing-active-management/.
©2012 InvestorPlace Media, LLC
Comments are currently unavailable. Please check back soon.