Image Credit: Alex Nabaum
By Jason ZweigÂ |Â Â April 12, 2019 12:24 p.m. ET
Sometimes, what research shows is less telling than what it doesnât show.
ConsiderÂ a recent studyÂ from Fidelity Investments that has been circulating widely among financial advisers. It indicates that index, or passive, fundsâthose popular investment baskets that run on autopilot by tracking all the holdings in a market benchmark like the S&P 500 indexâmay not be as superior as many investors think.
One slide, titled âDramatic Misperception of Passive Outperformance,â shows active fundsâwhich try to beat the market instead of just matching it as passive funds doâearning higher returns in most categories.…
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For further reading:
Benjamin Graham, The Intelligent Investor
Jason Zweig,Â The Devilâs Financial Dictionary
Jason Zweig, Your Money and Your Brain
Jason Zweig, The Little Book of Safe Money
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