Investing in more mature stock and bond mutual funds and exchanged-traded funds (ETFs) allows you to evaluate the historical consistency of a fund’s record. On average, the future portfolio returns of more mature funds are probably no more predictable than for very young funds with a similar style or strategy. However, the record of accomplishment […]
If you are going to invest in actively managed mutual funds, then these funds need to have a sufficiently large asset base to fund the necessary securities research and analysis. If an active fund is too small, then fund securities research, analysis, and management quality can suffer or fees could grow. Passively managed index funds […]
A high ETF or mutual fund management expense ratio can only be justified, if an investment fund earns even higher net returns that compensate for these higher expenses. Sadly, this is most often NOT the case with costly actively managed equity and bond mutual funds and with high cost exchange-traded funds (ETFs). In addition, you […]