Quote:
Originally Posted by lukeh
I've never followed this line of thinking. If after all fees and charges a managed fund consistently beats the index fund why would I want to put my money in the index? Look up these two managed funds (PYSCX and PVSCX) and compare them to a low cost Vanguard S & P index ETF (VOOV) over the past 5 years. Why wouldn't I pick the managed fund? Sometimes the best costs more. What do I care as long as I end up with more in my pocket?
|
Risk is the unanswered question. Those funds have a relatively short history through a very unusual economic period. Sometimes chasing returns can be a trap. Over a 5yr period, Nasdaq outperformed PVSCX.
Chasing Performance is the biggest don
Dollar cost averaging into index funds is really really boring stuff that no commissioned advisor will recommend. If a long term growth strategy with very low cost and low risk is something you think makes sense to include in your portfolio then Vanguard looks very interesting. Different strokes for different folks.
https://investor.vanguard.com/mutual-funds/index-funds?WT.srch=1