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Chalk one up for Indexing
Old 01-23-2006, 12:49 PM   #1
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Chalk one up for Indexing

http://yahoo.reuters.com/financeQuot...3220344_newsml
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Re: Chalk one up for Indexing
Old 01-23-2006, 01:28 PM   #2
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Re: Chalk one up for Indexing

Ahhh - the last THREE years. Well, if 2001 and 2002 had been included I'm not sure index funds would have looked so hot. Certainly not the larger-cap ones....

It's be EASY to beat the S&P500 the last few years. I'm almost getting used to it.

It seems that since 1999 has not been so great for owning an S&P500 index fund. My experience has been that many managed funds have easily beaten it.

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Re: Chalk one up for Indexing
Old 01-23-2006, 01:56 PM   #3
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Re: Chalk one up for Indexing

Well - there may have been a few years since 1966 when I have beaten 'index funds' - but overall including all years no.

Heh, heh heh - notice that Bogle didn't roll out the first one till 1976??

Won a few years by forfeit - heh, heh.

Even with a ten year head start - I didn't.

But I'm* sure some have(Buffett?) - but they have never sent me a cut to console me.
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Re: Chalk one up for Indexing
Old 01-23-2006, 04:01 PM   #4
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Re: Chalk one up for Indexing

Quote:
Originally Posted by audreyh1
Ahhh - the last THREE years. Well, if 2001 and 2002 had been included I'm not sure index funds would have looked so hot. Certainly not the larger-cap ones....
From the article:

"Similarly, over the past five years, the [S&P 500, S&P MidCap 400, S&P SmallCap 600] outperformed 65.4 percent of large-cap funds, 81.3 percent of mid-cap funds and 72.4 percent of small-cap funds, [respectively]"

Not surprising given their cost advantages. Of course, if you compare small-cap active funds to large-cap index funds, you're comparing apples and oranges.

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Re: Chalk one up for Indexing
Old 01-23-2006, 04:44 PM   #5
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Re: Chalk one up for Indexing

Oh well, I guess since many of my mutual funds beat the S&P500 index funds over those time periods, I guess that seemed like lots of funds to me.

Gosh - the S&P500 was only up 3% last year.* Many of my mutual funds did 3x that. Some even better than 3x.* Only one did worse than 3%.

I guess the "statistics" never jibe with my personal experience.* And that's been going on for 6 years now. I guess there are a whole lot of really dog funds with high expenses out there that provide such poor comparisons.

I would not have expected to beat the S&P500 in the 90s.* It was smokin'.* 2000s have been a whole 'nother story.

The S&P500 as an index never made any sense to me.* It's cap-weighted, and the change it at least once a year to let the "sexy" companies in and boot the "boring" companies out.* Sounds like a recipe for buy-high and sell-low to me.

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Re: Chalk one up for Indexing
Old 01-23-2006, 07:52 PM   #6
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Re: Chalk one up for Indexing

Quote:
Of course, if you compare small-cap active funds to large-cap index funds, you're comparing apples and oranges.
Seems like a lot of them do this for as a marketing scheme.

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