I’m Keith DeGreen and this is your Investors Minute.
Only 4% of actively-managed mutual funds finished in the top half of their peers each year over the past five years. Four percent. That’s all.
Meanwhile, over the past five years, only 39% of actively-managed funds outperformed the index against which they compete.
So not only do actively-managed mutual funds typically fail to outperform their index, it’s virtually impossible to know which very few of them will consistently outperform their peers.
Meanwhile, passive exchange-traded funds permit us to value, and invest in, entire markets and sectors. Rather than trying to pick individual stocks that might outperform their index, we focus on the selecting the markets and sectors that are set to outperform.
Just another reason why we’re proud to have pioneered the use of low-cost exchange-traded funds
FEE-ONLY DeGreen Capital Management. Pioneers in low-cost exchange-traded fund investing. Newport Beach: 949-333-3450. Scottsdale: 480-609-9900. www.DeGreen.com. Minimum portfolio requirement $500,000.
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