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Another point is that after fees almost no funds consistently beat VWAP; and for the ones that do you'll either not be invited to invest in it, or it will turn

Another point is that after fees almost no funds consistently beat VWAP; and for the ones that do you'll either not be invited to invest in it, or it will turn out to be a Madoff. The take away being if you are investing in "normal" equity investment funds at less than $1B invest in index funds, preferably mutual index funds.

foobarqux 12y ago
> Another point is that after fees almost no funds consistently beat VWAP VWAP doesn't mean whatever you think it means.
- tankenmate 12y ago
  VWAP means volume weighted average price. Admittedly in this case I am using the phrase in very very broad terms; to spell it out, very very few managed funds can consistently buy at a lower price than the market as a whole (on any given day, VWAP, as opposed to the opening or closing price which is what is normally published) and consistently sell at a higher price than the market (and hence consistently out perform the market). Once you factor in fees and an outlook of 10+ years the number of funds essentially drops to zero, and most often they give returns below the market average; better to get a return that matches the market, indexed funds, and with very low fees, a mutual index fund.
  - foobarqux 12y ago
    > VWAP means volume weighted average price. Admittedly in this case I am using the phrase in very very broad terms; to spell it out, very very few managed funds can consistently buy at a lower price than the market as a whole and consistently sell at a higher price than the market (and hence consistently out perform the market). Once you factor in fees and an outlook of 10+ years the number of funds essentially drops to zero, and most often they give returns below the market average; better to get a return that matches the market, indexed funds, and with very low fees, a mutual index fund. Unless you are a market maker that isn't how investing works: You are trying to sell higher than you bought in at, not higher than the currently quoted price.

foobarqux 12y ago

> Another point is that after fees almost no funds consistently beat VWAP VWAP doesn't mean whatever you think it means.

tankenmate 12y ago
VWAP means volume weighted average price. Admittedly in this case I am using the phrase in very very broad terms; to spell it out, very very few managed funds can consistently buy at a lower price than the market as a whole (on any given day, VWAP, as opposed to the opening or closing price which is what is normally published) and consistently sell at a higher price than the market (and hence consistently out perform the market). Once you factor in fees and an outlook of 10+ years the number of funds essentially drops to zero, and most often they give returns below the market average; better to get a return that matches the market, indexed funds, and with very low fees, a mutual index fund.
- foobarqux 12y ago
  > VWAP means volume weighted average price. Admittedly in this case I am using the phrase in very very broad terms; to spell it out, very very few managed funds can consistently buy at a lower price than the market as a whole and consistently sell at a higher price than the market (and hence consistently out perform the market). Once you factor in fees and an outlook of 10+ years the number of funds essentially drops to zero, and most often they give returns below the market average; better to get a return that matches the market, indexed funds, and with very low fees, a mutual index fund. Unless you are a market maker that isn't how investing works: You are trying to sell higher than you bought in at, not higher than the currently quoted price.