Are Index Fund Investors Simply Smarter?

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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.

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Read more at my AssetBuilder article





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.

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2 Responses

  1. 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

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