>Of course such comparison ignores transaction costs, administrative costs, risk, diversification across asset classes, et al. That's exactly why mutual funds

>Of course such comparison ignores transaction costs, administrative costs, risk, diversification across asset classes, et al. That's exactly why mutual funds underperform. Given the EMH, it makes more sense not to spend so much time on 'asset management' like that. If you believe the S&P is overvalued because too many people index to it, you can invest in broader index funds and, if you're correct, yield a higher return.