Why Do Indexes Beat Most Actively Managed Funds?

While it isn’t a physical law, there should be a law based on the irrefutable premise that index funds always beat most actively managed funds. This isn’t news to most investors. But most people don’t know why indexes win.

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Why Do Indexes Beat Most Actively Managed Funds?
There are several physical laws. Some examples include the law of gravity, the law of friction, and the ever-scintillating Pascal’s law, which relates to water pressure. Physical laws are undeniable truths. While it isn’t a physical law, there should be a law based on the irrefutable premise that in…