Less Than 7 Percent of US Active Equity Funds Have Beat the Market Past Decade

Re:Less Than 7 Percent of US Active Equity Funds Have Beat t... by ForHackernews on Saturday April 15, 2023 @05:57PM (#35584978)

> Are there low-fee funds that just track the S&P 500?

...yes. Sorry, I don't mean to sound like a jerk, but is this really a question? There are dozens of them: https://www.thebalancemoney.com/the-cheapest-sandp-500-index...

I'm continually astounded by techies who have so much money and so little idea what to do with it. It's not like this stuff is even hard, not compared to keeping up the latest JS nonsense: https://www.bogleheads.org/wiki/Main_Page#mp-gs-h2

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Re:Less Than 7 Percent of US Active Equity Funds Have Beat t... by jrochkind1 on Saturday April 15, 2023 @06:01PM (#35585026)

Thanks!

You may be over-estimating how much money I have as a techie, I work in non-profit/academic sector. My retirement funds are relatively paltry compared to what you may assume about techies with so much money (but perhaps still more than US median for my age; googling says median US retirement savings across all working-age households is $95,776), and mostly in managed 401k/403b where I have previously just chosen "lifecycle funds". ¯\_(ツ)_/¯

People make a lot of assumptions about how much wealth random HN commenters or the HN audience in general have, and sometimes I start feeling like I'm really poor compared to all you techie multi-millionaires... but when I actually pay attention to comments, I realize, nope, a lot of HN is more like me (although probably often ashamed to say so).

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Re:Less Than 7 Percent of US Active Equity Funds Have Beat t... by dehrmann on Saturday April 15, 2023 @06:41PM (#35585364)

If by "lifecycle funds" you mean target date funds, setting your allocation to 100% for your retirement year is the most reasonable strategy you can do.

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Re:Less Than 7 Percent of US Active Equity Funds Have Beat t... by havermeyer on Saturday April 15, 2023 @06:49PM (#35585431)

FYI you may be better off using an index fund and then rebalancing into bonds or other fixed income options closer to retirement. See this article, for example. https://www.cnbc.com/2018/07/13/one-of-the-biggest-retiremen...

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Re:Less Than 7 Percent of US Active Equity Funds Have Beat t... by jrochkind1 on Saturday April 15, 2023 @09:16PM (#35586351)

But isn't that what the "lifecycle" target date funds do? The argument is that you will know the schedule you want to rebalance on for your custom personal needs, better than the generic target-date "lifecycle" fund will?

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Re:Less Than 7 Percent of US Active Equity Funds Have Beat t... by havermeyer on Monday April 24, 2023 @11:57AM (#35689264)

Sorry, I didn't check comments for a while. The target date funds tend to have higher management fees and yes, worse composition of stocks versus bonds compared to holding a mix yourself, IMO, based on your goals.

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Re:Less Than 7 Percent of US Active Equity Funds Have Beat t... by foobiekr on Saturday April 15, 2023 @10:34PM (#35586726)

But never, ever in a taxable account.

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Re:Less Than 7 Percent of US Active Equity Funds Have Beat t... by ForHackernews on Sunday April 16, 2023 @01:31PM (#35592231)

You're welcome! Sorry if that came across as aggressive. I get tired of seeing people on HN posting like, "How do I live on my paltry $500k/year income? Should I gamble it all on dogecoin?" (this is an exaggeration, but only slightly)

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