Are Index Fund Investors Simply Smarter?

sheep

We hear a lot about the low costs of index funds. 

Sure, they outperform most actively managed funds.  As a result, many people assume that those who buy index funds are simply smarter.  But investors’ intelligence can be measured in other ways.  Those that buy high and sell low are fools.  And it appears that more investors in actively managed funds conduct such silly behaviour, compared to their counterparts in index funds.

Image courtesy of pixabay.com

Read more at my AssetBuilder article


internaxx special deal for andrew hallam readers

Andrew Hallam

I’m a financial columnist for Canada’s national paper, The Globe and Mail, as well as for AssetBuilder, a financial service firm based in Texas. I’m also the author of Millionaire Teacher: The Nine Rules of Wealth You Should Have Learned in School (2nd Ed. Wiley 2017) and The Global Expatriate’s Guide To Investing: From Millionaire Teacher to Millionaire Expat (Wiley 2015). My mission is to educate, motivate and inspire people on basic retirement planning and best practices for investing, using evidence-based strategies. I'm happy to comment on your questions. However, please read the Terms of Use, Privacy Policy and the Comments Policy.

You may also like...

2 Responses


  1. essential reading for visitors to andrew hallam website

  2. Cameron says:

    Hi Andrew,

    What do you think about Vanguard’s “all-in-one” retirement funds? Would these be similar to your strategy in millionaire teacher just with a little less flexibility?

    Thanks,
    Cameron

Leave a Reply

For your privacy we strongly recommend you do not use your full real name. While your email address will not be published, it may reveal your photo or a recognizable image if it is associated with gravatar.com. It is strongly suggested you do not use a corporate or ISP email address. Before your comment is published you will receive an email asking you to confirm your email address. Select "Notify me of follow-up comments via email" to receive notifications of replies and be able to adjust your subscription. Published comments will not be deleted.

By clicking "Post Comment" you confirm you have read and agree to the conditions on the Legal Page; including the Privacy Policy, the Cookie Policy, and the Comments Policy.  We reserve the right to not publish comments that do not meet guidelines.