Originally Posted by
fishforfun
I was surprised to see that the managed funds on average are being out performed by index funds. The target retirement or life cycle funds don't have the lengthy track record of the index funds so I'm curious in 20 years how they will compare.
No one has ever been able to out perform the market on a consistent basis, and actively managed funds carry more costs. Those two things alone make index funds more advantageous. Some of the index funds in the PRAP have expense ratios as low as 6 basis points.