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Originally Posted by D.C.Villager
I keep running into mentions of this fund, so I did some thorough research and you are 100% correct. 10 year return for XLG is 14.38%, 10 year return for SPY (an S&P ETF) is 12.76%.
This is a link to MANY articles that I read comparing XLG to S&P 500. XLG vs. SPY — ETF comparison tool | PortfoliosLab
I moved some of my SPY over to XLG in my 401k , where there are no tax consequences for doing such. Thank you for planting the final seed that made me act |
one of the more interesting points of this type of fund, is that there is a huge amount of survivorship bias built in. What that means as an example: not predicting this for the binary thinking types: If TSLA starts falling cause Elon gets put in jail, the fund would replace TSLA with the 51st stock, and would maintain its large company bias. And in the same point at the bottom 50, up and coming stocks will start to infiltrate the bottom 45-50 as their market cap grows and the out of favor falls. .
The other interesting point, at some point the technology sector will start to go sideways, being overvalued and will time correct, and the next 43 will pick up the dollars, and continue. The only way active managers have to beat the index as their benchmark is too overweight the top stocks in the index and hope that the lousy 450 or 493 will not outperform, which is what this ETF represents. .
anyway, for those with a legal viewpoint, I am not selling anything, I am not receiving any compensation, and I am invested a large portion of my IRA in the XLG. These posts are only to increase awareness of high quality investments which may outperform your current portfolio, but due your own due diligence as I am not a CFP, CFA, CMT, CTA or any other C%%