ETF outperform hedge fund and S&P 500 according to Vanguard founder

(Last Updated On: March 5, 2017)

ETF outperform hedge fund and S&P 500 according to Vanguard founder

A while ago I posted this video below. I wanted to add the following articles that came out to prove that ETFs are the way of the future for trading individuals. No more betting with individual stocks or underperforming alternative funds.

“There is deep disenchantment with hedge funds among large investors. People have been paying extremely high fees for very poor performance — performance even a zero fee wouldn’t justify….

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https://www.ft.com/content/68123fe6-ff68-11e6-96f8-3700c5664d30

The latest figures, which were compiled for FTfm by ETFGI, the consultancy, capture investors’ waning interest in hedge funds. Pension funds in US states including Illinois, New York, Kentucky and Rhode Island, have eliminated or reduced their holdings. The largest US public pension fund, Calpers, announced in 2014 that it was withdrawing entirely after concluding hedge funds were too expensive and complex.

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“Trade union trustees on the boards of public pension plans on both sides of the Atlantic have been pushing for ETFs while stock markets have set record highs. They believe that unless and until hedge funds regain their mojo, ETFs are a better, simpler and cheaper alternative.”

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Warren Buffett, the billionaire investor and an outspoken critic of fund managers who profit from high fees at the expense of their clients, bet in 2007 that a Vanguard S&P 500 index fund would beat five funds of hedge funds selected by Protégé Partners, an investment company, over the next 10 years.

Also remember that Vanguard is driven by HFT technology as well

https://www.bloomberg.com/amp/news/articles/2017-03-02/what-s-hotter-than-the-s-p-500-how-about-an-s-p-500-etf-chart

https://www.ft.com/content/68123fe6-ff68-11e6-96f8-3700c5664d30

 

The best part of this while argument are there are morons in these industry who think otherwise. It is time they get it together to fully understand small alternative funds either need tp perform or will be shutdown as more institutional funding will go towards performing ETF firms like Vanguard and Blackrock.

 

 

 

NOTE I now post my TRADING ALERTS into my personal FACEBOOK ACCOUNT and TWITTER. Don't worry as I don't post stupid cat videos or what I eat!
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About caustic

Hi i there My name is Bryan Downing. I am part of a company called QuantLabs.Net This is specifically a company with a high profile blog about technology, trading, financial, investment, quant, etc. It posts things on how to do job interviews with large companies like Morgan Stanley, Bloomberg, Citibank, and IBM. It also posts different unique tips and tricks on Java, C++, or C programming. It posts about different techniques in learning about Matlab and building models or strategies. There is a lot here if you are into venturing into the financial world like quant or technical analysis. It also discusses the future generation of trading and programming Specialties: C++, Java, C#, Matlab, quant, models, strategies, technical analysis, linux, windows P.S. I have been known to be the worst typist. Do not be offended by it as I like to bang stuff out and put priorty of what I do over typing. Maybe one day I can get a full time copy editor to help out. Do note I prefer videos as they are much easier to produce so check out my many video at youtube.com/quantlabs