Originally Posted by
Winston
You’re exactly correct, and those index funds at 0.08% are far cheaper than the actively managed ones at 0.4-0.6% (literally 5X to 8X cheaper). Guess what else: The cheaper index funds will outperform.
You wanna make a bet?
https://www.investopedia.com/article...-brka-brkb.asp
No bet from me. I’m passive all the way with a three fund portfolio out of the PRAP core funds
Since our target date funds are custom, our benchmark for measuring outperformance is also custom accounting for passive returns of different underlying investments
They have had outperformance but only by a couple of basis points. One could argue not worth the effort