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The Cost of Investing in an Actively Managed Fund
The S&P 500, this is according to Morningstar, made 9.67%. And that's what the American investment company of America made,. The average of all of the actively managed funds, 9.99. So not only did they not get as much as the index, oh, I haven't told you the index return, 9.11. 11%, versus 9.5, it's approximately 1.5% difference. Now some of the things that are buried in that 1. 5% difference in returns are the higher expenses and the cost of turnover, the buying and selling that goes on.