5 ms·
> My personal performance of investing in all three categories (total market index, S&P 500 index, NASDAQ-100 index) matches every chart you can find online ove
by wgerard 6y ago
> My personal performance of investing in all three categories (total market index, S&P 500 index, NASDAQ-100 index) matches every chart you can find online over last 5 years; the total index funds are carrying the baggage of all that "not S&P" weight and are worse returns than the 500, with the 100 achieving almost twice the performance as the 500 (near 24% returns over 5y).
I think you're perhaps inadvertently proving my point: If S&P funds are performing significantly better than total market funds, either there's something particularly special about S&P companies (very valid reasoning, it's not a random assortment) or S&P companies are overvalued simply because they're part of the S&P and investors value that more than perhaps the fundamentals would support (not a completely asinine thought).
- gravitas 6y ago> I think you're perhaps inadvertently proving my point Yes sorry that was the intention - the "market mechanics" which I observe as a passive investor support your theory, as well as my own choices in how I move that money. My goal is overall return on investment as opposed to say socially-conscious or other types of investing choices (although I have dabbled in some of the socially conscious funds, good for the soul but not really the pocketbook); the data shows that using the index funds over total market funds is a better financial choice for a guy like me who just wants to "sort of care from time to time" over the long term.
- wgerard 6y agoAhh, gotcha. Cheers then!