Bottom line is that there are no guarantees that active management will outperform index funds although it all can sound very tempting. Active management also comes with a higher price tag than index funds and ETF’s that provides an additional drag on performance. Hedge funds can easily charge 2% plus a performance fee as much as 20% of the annual gains. The Vanguard Index 500 charges a mere .05%. So, even if you pay an advisor to help you manage your investments and financial affairs, you will likely pay well under the average hedge fund expense!
Hey there, financial heroes in the making! Today, we’re diving into the exciting world of Exchange-Traded Funds (ETFs). They may sound like a complicated acronym,