Was there any point in this discussion topic where someone asked if actively managed funds were a good idea? No…My post was in no way intended to be critical or demeaning. Although I now use only index funds, I've owned many of Vanguard's actively managed funds in the past. They are good funds and vastly superior to most other active management options.
Too often, too many in these forums spend time diminishing actively managed funds as if people who choose to invest in them are doing something wrong. I find it demeaning and unproductive.
While it’s a good idea for investors that are in actively managed funds to review their portfolios and make sure they are not getting ripped off on fees. I don’t think indexes are best for everyone. Especially those who have no clue what an index is, don’t understand balancing or someone who wants some management but does not want to pay a personal investment manager 1% on top of their fund fees.
It’s like Vanguard Wellesley and Wellington folks are the black sheep of the family! Last I checked,Bogle bought them and made them better!
John
The factual and objective statements I made in my post, however, can be very productive points to make for anyone who doesn't already understand them. We're all here to learn as well as teach, and that can't be done without dispassionate conversation. And some principles are well worth repetition for any of us. I think of investing as 90% rational, but the other half is still emotional.I meant no offense.
I meant no offense.Instead, because they were mentioned at all, blanket unsubstantiated statements were made about the problem with actively managed funds.
I have around 7 million of my assets in actively managed funds. I have done extensive backtesting and benchmarking on these funds putting them up against various different other actively managed funds and index’s.
At no time did I ever criticize another’s persons choice of index funds here!
It’s exhausting, every single time that I mention I have actively managed funds, how many times I get these comments.
Yes, I pay 1 1/10th of 1% more for active management than you do. Thats 7k I can save a year. Yes management changes, I have backtested all the way back to 1971 and I’m comfortable with my choices. Yes, I understand the risk! I get it, indexes are so much better.
I started in 1990 with 1k and penny gold stocks. I retired at 52. Tired of getting yet another lesson on investing, most of my post leave out the actual funds I’m in and instead give the 50/50 breakdown.
I feel very unwelcome in these forums, why? Because I choose actively managed funds. So what it’s a Bogleheads website. Vanguard owns both funds and has since 1971 and 1975.
I assume this post will get censored and I will be banned from Bogleheads.org.
If that’s the case, whoever gets to read this, I wish you a happy near year!
Good luck with your portfolio…
John
Statistics: Posted by itnetpro — Wed Jan 15, 2025 4:37 pm