[macker]

[QUOTE=Slava;2460292][QUOTE=macker;2459795]

Weird. I did a very quick search and found 326 funds that were equal to or over your 6.2% rate for the last decade. I'm not sure how many index funds could make that claim? I also think that a lot of the ETF studies are flawed to being with. The MERs in some cases are low, but there are acquisition costs that are not factored in or the comparison is against the index as a whole that no one can buy for free.


I think you are making my point here. 326 funds divided by the number of funds in Canada will equate to at least 75% - 80% of the fund managers underperforming the index. If 75% - 80% can't beat the index then why give them 2% -3% every year. It doesn't add up. I couldn't agree more with Warren Buffett about the wisdom of using index-based funds for most institutional and individual investors. It is not just Warren Buffett either....look at the Chinese state owned sovereign wealth fund (over 300 billion in assets) Top holdings include MXI, XLE, EFA, EEM and GLD. I think they like ETF's so much as they can hide in them and play the trends without having to disclose their postions like in stocks. By the time we find out their holdings they could have changed. ETF's have much to offer and you can actually get actively managed ETF's now with Horizons BetaPro if that is your basis but I am saying to do your DD and see what works best for the average investor. Google active funds don't work and see what you get. Sure there are some star managers included in those 326 funds but it is a very small percentage. How many players are in the NHL and how many scored 50 goals this year. It is the same thing. I can see where you are comming from and I won't really argue this point beyond this.