Since the first index fund was created in 1975, the growth and use of passive investing vehicles has taken off. When you say “Vanguard,” people the world over immediately know what you are speaking about in terms of investing.
The academic research has shown that trying to beat the market is a fool’s game and that capturing market returns is where the prudent investor should focus.
In light of all of this, the past several years there has begun to be murmuring about index funds “distorting” the market and this providing an opportunity for active management to provide value. It is a great marketing pitch, but it just does not hold water.
The attached article goes into some detail on these recent claims and explains why seeking to capture market returns is still a solid investing approach. Take a look at this article to learn more about this topic.
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Enjoy the read and remember, it’s NOT about the money. It’s about how the money supports your goals!
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