Quote:
Originally Posted by stevecmo
Less than 10% of all advisors beat the S&P 500.
|
It's very difficult as an advisor has transaction costs, and the index does not. The SP500 index also does not account for dividends nor dividend reinvestment. The other restriction is that an advisor cannot be a closet indexer, meaning, 80% in the SPY and the remaining in advisor selected stocks.
So VOO and SPY would logically seem to be the best investment, as all the bogglehead cult members would espouse. However, there are also mgmt fees for each, therefore, you will still not match the SP500 returns with SP500 index funds. There are also some systemic risk issues with VOO and SPY, which boggleheads refuse to admit. A describer and profiteer of index products, Michael Greene of Simplify Investments, tried to debate the concept in the Vanguard forums and was banned from the cult.
However, there are advisors, and many would not be counted in the advisor pool. The world is big, and there are many managers which are only available to the institutional level, and maybe the retail investor, but retail is not where the money is for making a living.
good luck