Bashing index funds is a popular theme, but do the criticisms have value?
There are reasons to prefer index funds (now 18% of funds):
- Supported by academic research.
- Supported by history.
- Most active managers don’t beat the index.
- Index funds have tax advantages and lower fees.
A well-meaning blogger touts the CGM Focus Fund as being spectacularly better than the S&P 500. Let’s give him credit for courage, and then demolish his ideas.