Mutual funds don't seem to do very well vs lower cost

Posted on: December 5, 2023 at 21:12:59 CT

ETFs. Everyone is trying to find "the best stocks" and that tends to price in the values pretty accurately on average. Unless things have changed recently, studies have shown that the expense of hiring financial gurus to find the best values and the additional trading expenses involved outweigh the potential benefits vs buying an ETF in the same sector(s).

I remember a professor in a finance class admitting that he had difficulty matching the market on a longer timeline, much less beating it consistently. Perhaps he was the one who mentioned a study where monkeys throwing darts at a dartboard to pick stocks had a better portfolio than something like 90% of the "experts".