Larry Swedroe wrote wrote:American Century vs. DFA
Equal-weighting the American Century funds in each asset class, American Century outperformed in three of the nine asset classes and underperformed in the other six. An American Century portfolio that equal-weights the nine asset classes produced a return of 10.1 percent per year, underperforming by 0.5 percent per year a similar DFA portfolio that returned 10.6 percent.
American Century vs. Vanguard
American Century outperformed Vanguard in three of the seven asset classes where they had similar funds and underperformed in the other four. A portfolio of American Century funds underperformed a Vanguard portfolio by 0.1 percent per year (10.1 versus 10.2).
From the American Century Investments paper wrote:In a challenging investment climate, featuring slow growth, modest returns and the probability of heightened risks going forward, the ability to realize positive alpha produced by an active manager is quite valuable.
He includes this chart:These analyses of U.S. and European funds demonstrate the asset allocation advantages to an investor of combining index and actively managed funds. They also further the rationale for an overall core-satellite approach, comprising index funds for the core and actively managed funds as satellites.
Ged wrote:nisiprius wrote:
The range on the horizontal axis seems to be saying that this concept is nonsense.
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