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> 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.