anders2010
Confused about dryer sheets
- Joined
- Jul 24, 2010
- Messages
- 8
i just learned about index funds and i've spent the whole day trying to figure them out. i've read a bunch of articles about how they are superior to mutual funds because mutual funds come with expenses that index funds don't. but i have looked at a bunch of index funds and i am not really wowed by their performance. this is probably because i'm very new at this and i'm looking at things the wrong way which is why i'm hoping you guys can help me understand things.
so i was comparing these two funds. this is a vanguard index fund that seems to do okay (im reading it's row as its yearly return, is this right?)
Vanguard Balanced Index (VBINX) Fund Performance and Returns
and here is a latin american mutual fund
Fidelity Advisor Latin America T (FLTTX) Fund Performance and Returns
now it seems like morningstar shows an index fund comparison along side the mutual fund. but as far as i can tell, the mutual fund really out performs both index funds. from 2003-2008 it had returns at 38+ a year. now, i might be totally reading that wrong and i think i am. but even if comparing if im comparing the two funds incorrectly, doesnt morningstar show with its comparison that the index fund is easily beaten? and i think i have seen a lot of funds on morningstar beating their index fund comparison which confuses me as to how index funds are supposedly better.
im hoping you guys can explain it to me because im new at this and struggling with figuring it out.
so i was comparing these two funds. this is a vanguard index fund that seems to do okay (im reading it's row as its yearly return, is this right?)
Vanguard Balanced Index (VBINX) Fund Performance and Returns
and here is a latin american mutual fund
Fidelity Advisor Latin America T (FLTTX) Fund Performance and Returns
now it seems like morningstar shows an index fund comparison along side the mutual fund. but as far as i can tell, the mutual fund really out performs both index funds. from 2003-2008 it had returns at 38+ a year. now, i might be totally reading that wrong and i think i am. but even if comparing if im comparing the two funds incorrectly, doesnt morningstar show with its comparison that the index fund is easily beaten? and i think i have seen a lot of funds on morningstar beating their index fund comparison which confuses me as to how index funds are supposedly better.
im hoping you guys can explain it to me because im new at this and struggling with figuring it out.