Mark Sutcliffe February 4, 2016 Starting Out Stock-picking’s losing streak If you’re going to pay more for something, you want it to perform better, right? So where’s the evidence that active stock-picking works better than using the passive approach of exchange-traded funds? There isn’t any. In fact, 2015 was the sixth year in a row that the average stock-picking fund underperformed the market. As this article points out, the conditions in 2015 were supposedly ideal for stock picking and even so, the majority of funds did worse than the market. Even in 2009, the last year that the average fund didn’t underperform the market, only 53 per cent produced better results than their benchmark index, meaning you’d still have almost the equivalent of a coin toss trying to pick which ones would outperform the market and which wouldn’t. Why do so many funds and advisers ignore the evidence and actively pick stocks? Because it’s better for them, not because it’s better for you. Share: Facebook Twitter LinkedIn Email CIRO Advisor Report
Personal Wealth Mark Sutcliffe Beat the market? Most mutual funds don’t even meet the market Apr 26, 2017 Personal Wealth