FLRG - You'd Be Surprised Which Four Vanguard ETFs Have Consistently Beaten Their Category Averages
2024-02-18 01:14:23 ET
Summary
- Most investors have never heard of so-called "factor funds" but four of five such Vanguard factor funds have outperformed Vanguard ETFs of similar composition.
- Factor funds focus on portfolios that have stocks with past characteristics such as momentum, quality, and low volatility.
- Outperformance has been consistent since inception, except for a fund with a focus on low volatility.
The belief currently has taken hold among many investors that since index funds frequently come out ahead of actively managed funds, which is mainly where investors should be placing their money. As a result, investors are moving more and more of their money to passively managed ETFs (and mutual funds) as compared to actively managed ones. In fact, assets in passive investments now top those in active funds for the first time. See this article for details....
You'd Be Surprised Which Four Vanguard ETFs Have Consistently Beaten Their Category Averages