Vanguard research finds cots to be a mojor factor in long-term underperformance of active funds By Simon Smith,CFA
A comprehensive analysis of fund returns in the UK by Vanguard has revealed that costs are the central contributing factor underlying the under-performance of active funds versus their benchmarks over the long-term. Peter Westaway, Chief Economist at Vanguard. According to Vanguard’s Case for Indexing research, only 17% of active equity funds and 4% of active fixed income funds that were in existence in 1997 outperformed their prospectus benchmark over the …