facebook twitter instagram linkedin google youtube vimeo tumblr yelp rss email podcast phone blog search brokercheck brokercheck Play Pause
The Mutual Fund and ETF Landscape in 2024 Thumbnail

The Mutual Fund and ETF Landscape in 2024

What's the probability that your funds or ETFs will "beat" the markets over the next 10 or 20 years? If they are "active" funds, meaning the fund manager tries win by picking stocks or timing when to get in or out, the odds aren't very good.

Our Value Added IndexingTM approach utilizes funds that look to to match the return of a particular area of the capital markets. The benefits, relative to traditional "active" stock picking, are superior long-term performance, broad diversification, consistency, low cost, and tax efficiency.

This approach is grounded in research. A recent study by Dimensional Fund Advisors, The Fund Landscape 2024: A Study of US-Domiciled Mutual Fund and Exchange-Traded-Fund Performance, confirms that most active money managers do not outperform their benchmarks.

Here is Dimensional's study: 2024 Fund Landscape Report

 Investors may be surprised by how many funds disappear over time. At least half of the equity and fixed income funds were no longer available after 20 years. Including these nonsurviving funds in the sample is an important part of assessing fund performance because it offers a more complete view of the fund universe and possible outcomes at the time of fund selection. The evidence suggests that only a low percentage of funds in the original sample were “winners” — defined as those that both survived and outperformed benchmarks.

David Rappaport, CFP®

David is the Co-Founder and Chief Investment Officer of Rappaport Reiches Capital Management.  He acts as personal CFO to entrepreneurs and corporate executives, providing organization and clarity in their finances. Please connect with David below.  He loves to talk about investing, financial planning, and Aspiritech, a non-profit hiring individuals on the autism spectrum.

The author does not intend to provide investment, legal or tax advice as these materials are for general educational purposes only. Please consult your legal, tax or investment professional for advice on your particular situation. This material is derived from sources believed to be reliable, but its accuracy and the opinions based thereon are not guaranteed. It is not intended to be a solicitation, offer or recommendation to acquire or dispose of any investment or to engage in any other transaction. Investing involves risk including the possible loss of principal. Past performance does not guarantee future results. Please refer to RRCM’s Form ADV Part 2 for additional disclosures regarding RRCM and its practices.