13.09.2024
Why don't investors match market performance, even when they follow it?
Investing in an ETF may seem like an effective choice for an investor who is willing to be very patient, letting the investment mature for up to tens of years. In contrast, those with a little less patience or who expect results that are too high may find themselves disappointed. Investing in a market index Measurements show that, over the long and very long term, markets tend not only to rise but often also to beat active management. In short, the more years and decades that pass, the more likely it is that an index will outperform the funds that use it as a benchmark. One way to invest in indices is, as is well known, to buy shares in an ETF. The gap between fund and investor performance If what has been said so far is true, investors in ETFs should perform better in the long run than investors in mutual funds. Things, as Jason Zweig explains in the “Wall Street Journal,” however, don't work out that way, as research by “Morningstar” sho ...
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