The Case for Owning a Broad Market ETF Instead of Picking Stocks

95% of active managers of large-cap core funds lagged the S&P 500 after fees over the past 10 years. The piece recommends using an ultra-low-cost broad-market ETF to match the index and avoid active-management fees, implying higher odds of net outperformance for passive exposure over a decade.

Analysis

95% of active managers of large-cap core funds lagged the S&P 500 after fees over the past 10 years. The piece recommends using an ultra-low-cost broad-market ETF to match the index and avoid active-management fees, implying higher odds of net outperformance for passive exposure over a decade.