While we have successfully
recommended actively-managed mutual funds that have beaten
the market, some investors still want to have a portion of
their portfolio in low-cost index funds. We will occasionally
recommend index funds and exchange-traded funds (ETFs) that
we believe are good low-cost investment vehicles.
Index funds are designed for
investors who want to mirror the performance of a particular
index (such as the S&P 500) instead of investing in an
actively-managed mutual fund in which a mutual fund manager
(or a team of managers) tries to out-perform the index. Many
mutual funds fail to beat broad indexes while charging higher
fees than most index funds. In theory, index funds will perform
better than most actively-managed mutual funds while charging
lower fees.
Exchange-traded funds (ETFs)
track an index, a basket of assets, a commodity, a sector,
or an industry. Like index funds, ETFs provide diversification
and expense ratios lower than most mutual funds. Unlike mutual
funds, ETFs trade like a stock and can be sold short and purchased
on margin.
Performance
Since Inception1
Total Return
Index Funds & ETFs Portfolio:
147.8%
S&P 500:
69.4%
Average Annual
Return
Index Funds & ETFs Portfolio:
10.3%
S&P 500:
5.2%
1Inception:
September 23, 2005. Data last updatedDecember 15, 2017.
Video Update: High-Yield Stock Portfolio: +22.53% Per Year, Dividend-Growth Stock Portfolio: +19.57% Per Year - 25 Best Dividend-Growth Stocks - Research Update 180
Happy Memorial Day to everyone, especially to my fellow veterans. Thank you for your service! The market is closed today, so we’ll post our list of weekly investments on Tuesday instead of Monday.
05/19/2025
Dividend-Growth Stock Portfolio: Weekly Investments (as featured on YouTube)
