Passive ETF trumps active managers
Less than a quarter of active managers beat the market even when S&P returned more than 20% in 2021.
Stay diversified by buying the whole market through passive indices like $Vanguard S&P 500 ETF(VOO.US$ $Vanguard Total World Stock ETF(VT.US$.
Capturing the market returns is much better than your average active managers who can't beat the market. Don't need to beat the market, just ride the market, for the long run.
Stay diversified by buying the whole market through passive indices like $Vanguard S&P 500 ETF(VOO.US$ $Vanguard Total World Stock ETF(VT.US$.
Capturing the market returns is much better than your average active managers who can't beat the market. Don't need to beat the market, just ride the market, for the long run.
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Sianzsation : This is misleading, most funds do not set on benchmarking to beat S&P500. Funds objective is to reduce volatility and ensure having liquidity on cash outflow.
AhsweeOP Sianzsation: Whatever benchmark the funds you are talking about, did it beat the market? Volatility is here to stay, be it good times or bad times. If you can't stomach it, stocks is not for you. Those bigger passive index ETFs liquidity is always there. So it's easy for you to enter or exit positions with little spread.
My point is, if you are in the stock market in the long run, buying the whole market through 20, 30 years will reap you better rewards than trying to identify the "star manager" of the year. They tend to be the minority in wall Street and they don't sit at the podium for more than 2 consecutive years.
Pochong : ETFs wont let you have any lifechanging profits. It is there to protect your money and built up some wealth for ease of retirement and prevent erosion of monetary value due to inflation. If you like to remain where you are in life, sure. Go ahead and etfs all you want.
AhsweeOP Pochong: Yes of cos you won't get rich with ETFs. But it provides a safety net for one's financial planning / retirement in the long run. Once that is laid out, you can always go nuts with your other investment thesis like cryptocurrencies, metaverse and what have you.