A View from the Other End of the Hall (formerly the TUFA Blog)

A View from the End of the Hall is a blog created by Roger G. Ward, CPA/PFS,CFP. Roger is principal with WB Financial Group, LLC (WBFG). WBFG is an Atlanta based wealth management firm that specializes in developing comprehensive wealth management strategies for senior corporate executives as well as affluent individuals and families with more than $1 million of investable assets. Roger can be reached at rward@wbfinancial.com.

Tuesday, April 21, 2009

S&P Passive Funds Trumped Active Over Past Five Years

InvestmentNews (www.investmentnews.com) reported that a study from Standard & Poors Index Services indicated that passively managed funds outperformed the majority of actively managed for the past five years:
  • Between 2004 and 2008, the S&P 500 stock index outperformed 71.09% of actively managed funds.
  • The S&P MidCap 400 Index outperformed 75.9% of mid-cap funds.
  • The S&P 600 Index outperformed 85.5% of small-cap funds.
Similar results were also reported for international and fixed income funds.

At Tarpley & Underwood Financial Advisors, we strongly believe that an investor is best served by using a passive approach. Please see the web site of our strategic partner (Dimensional Fund Advisors) for information on their approach to passive investing.

Labels:

posted by Roger Ward @ 9:36 AM