Good article about a well performing mutual fund. Number 1 Ranked Mutual Fund Bests S&P 500 for 40 Years.
Why is it a good article? It makes an important note about mutual fund “flows” or, money deposited to or withdrawn from mutual funds on a macro scale. It says, “Last year, actively managed mutual funds that buy U.S. stocks suffered a net $98 billion in redemptions, while domestic stock index funds and ETFs attracted a net $167 billion. ETFs, nearly all of which mimic indexes, received $95 billion of the total. The two biggest recipients of mutual fund cash last year were Vanguard Group, the index fund leader, and Dimensional Fund Advisors…” I have written about the S&P 500 and other indices before. One post called, An Index by Any Other Name, goes into a lot of detail and also has links to other posts I have done on the subject of passive management and Dimensional Fund Advisors. Another post about Dimensional, Life Long Learning, discusses why we use them.
Lots of good reading!