Some funds well above total market index

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djw
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Some funds well above total market index

Post by djw »

At the end of each week, I calculate the total percentage that each of my funds has risen above its 52-week low.

I found tonight's results particularly interesting:

+42.04% VISVX Small Cap Value Index
+40.18% VGPMX Gold, Platinum, and Mining
+40.09% VGSIX REIT Index
+38.56% VEIEX Emerging Markets Index
+35.84% VMVIX Mid Cap Value Index
+34.42% VISGX Small Cap Growth Index
+33.84% VMGIX Mid Cap Growth Index

+27.02% VTSMX Total Stock Market Index
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Dan Kohn
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Average

Post by Dan Kohn »

On average (and ignoring fees), half of all equity fund outperform Total Stock Market every year.

http://www.bogleheads.org/wiki/index.ph ... ock_Market
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Random Musings
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Post by Random Musings »

Riskier assets should provide higher returns in the long-run. And off the bottom, they are illustrating the risk premium during this particular stretch.

Gold, well, that's another story......

RM
Swivelguy
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Post by Swivelguy »

How about comparing that to the list of funds that's farther down from their 52-week high than Total Market? It's probably the same funds.
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jpsfranks
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Post by jpsfranks »

mithrandir
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Post by mithrandir »

Swivelguy wrote:How about comparing that to the list of funds that's farther down from their 52-week high than Total Market? It's probably the same funds.
Right, these funds just have higher Beta.
norm
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Post by norm »

Based on a 1 year return VTSMX ranks 48th out of 125 large blend funds with an E/R under 0.50. It ranks 38th YTD,
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ObliviousInvestor
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Re: Average

Post by ObliviousInvestor »

Regarding the idea that half of all funds beat the index each year (before expenses):

The takeaway message is the same, but isn't it be more accurate to say that (before expenses) half of all dollars invested in equity funds outperform the total stock market each year? (That is, for each extremely large fund that underperforms, there could be several outperforming--or vice versa.)
Mike Piper | Roth is a name, not an acronym. If you type ROTH, you're just yelling about retirement accounts.
Fear and Loathing
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Re: Average

Post by Fear and Loathing »

Dan Kohn wrote:On average (and ignoring fees), half of all equity fund outperform Total Stock Market every year.

http://www.bogleheads.org/wiki/index.ph ... ock_Market
And fully half of them underperform...so when added together - TADA - they make up the average.

This is like saying half the people in the world are below average intelligence - because that is the way it is calculated. (I suspect more are below average intelligence because of a skewed distribution - but that is strictly personal opinion).

You just got lucky and chose the ones this time performed better.
Chuck T
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Post by Chuck T »

No real surprise. TSM is much less volatile than those funds and probably didn't fall as far as they did last year.

In fact, that is what jpsfranks graph shows.
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djw
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Post by djw »

I'm the OP and I agree with the point that others have made about the list of currently booming funds being similar (but not identical) to a list of funds which have been the biggest losers over the past 12 months. Yes, the current winners are high beta funds.

Below is a revised and expanded list of my "slices" which shows both the good and the bad news as of today.

UP = Percentage the fund has risen from its 52-week low
DOWN = Percentage the fund is still below its 52-week high

---UP-------DOWN--

+42.04% -40.65% VISVX Small Cap Value Index
+40.18% -68.09% VGPMX Gold, Platinum, and Mining
+40.09% -56.82% VGSIX REIT Index
+38.56% -50.06% VEIEX Emerging Markets Index
+35.84% -41.29% VMVIX Mid Cap Value Index
+34.42% -41.22% VISGX Small Cap Growth Index
+33.84% -45.55% VMGIX Mid Cap Growth Index
+29.38% -41.99% VIVAX Value Index
+28.43% -48.43% VFWIX FTSE World exUS Index

+27.02% -39.68% VTSMX Total Stock Market Index

+26.57% -53.93% VEURX Europe Index
+25.82% -41.20% VPACX Pacific Index
+25.66% -52.25% VGENX Energy
+22.95% -37.84% VIGRX Growth Index

The lesson I draw from this list is that individual funds, even index funds, can deviate widely from the total market index, both upwards and downwards. Even when correlations approach 1.00 during a crash. It's data like this that confirms my predilection to slice and dice (and rebalance fairly frequently) rather than simply put all of my equity money into a total market index and forget about it.
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