It's been a humbling week for small investors. First,
Goldman Sachs admits that tips from daily "trading huddles" were not
shared equally with all clients -- especially those with small accounts. Now,
Standard and Poor’s research revealed that for the past five years through June
30, the S&P 500 index beat 63% of actively managed large-cap funds. This
means that investors in simple, inexpensive index funds likely beat their
friends who invested in more costly, actively managed mutual funds.
Large caps were not the only funds that missed their mark.
- The S&P MidCap 400 outperformed 73% of mid-cap funds
- The S&P SmallCap 600 outperformed 57% of small-cap
funds
- And as the AP reported, "Except emerging market debt,
more than 75% of active managers failed to beat their benchmarks"
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