Posted by on Apr 14, 2019 in Articles & Advice, Blog, Columns, Featured |

Image Credit: Alex Nabaum


By Jason Zweig  |   April 12, 2019 12:24 p.m. ET


Sometimes, what research shows is less telling than what it doesn’t show.

Consider a recent study from Fidelity Investments that has been circulating widely among financial advisers. It indicates that index, or passive, funds—those popular investment baskets that run on autopilot by tracking all the holdings in a market benchmark like the S&P 500 index—may not be as superior as many investors think.

One slide, titled “Dramatic Misperception of Passive Outperformance,” shows active funds—which try to beat the market instead of just matching it as passive funds do—earning higher returns in most categories.


To read the rest of the column:


For further reading:


Benjamin Graham, The Intelligent Investor

Jason Zweig, The Devil’s Financial Dictionary

Jason Zweig, Your Money and Your Brain

Jason Zweig, The Little Book of Safe Money


Articles and other resources:


And Now for Something on Index Funds

Would Benjamin Graham Have Hated Index Funds?

Another Note on Benjamin Graham and Index Funds

On Jack Bogle (1929-2019)

I Don’t Know, and I Don’t Care