What the experts say:
"A low-cost index fund is the most sensible equity investment for the great majority of investors. My mentor, Ben Graham, took this position many years ago, and everything I have seen since convinces me of its truth." Warren Buffet
"Of the 355 equity funds in 1970, fully 233 of those funds have gone out of business. Only 24 oupaced the market by more than 1% a year. These are terrible odds." Jack Bogle (2007)
"Most investors would be better off in an index fund." Peter Lynch
"Only about one out of every four equity funds outperforms the stock market. That's why I'm a firm believer in the power of indexing." Charles Schwab
"Index funds are perhaps the most underrated stock funds in existence." "Mutual Funds for Dummies"
"The fund industry's dirty little secret: most actively managed funds never do as well as their benchmark." Arthur Levitt, Chairman, SEC
"Over the long-term the superiority of indexing is a mathematical certainty." Jason Zweig, senior writer for "Money"
"The media focuses on the temporarily winning active funds that score the more spectacular bull's eyes, not index funds that score every year and accumulate less flashy, but ultimately winning, scores." W. Scott Simon, author
"I love index funds." William Sharpe, Nobel Laurete
"Indexing is for winners only." Jane Bryant Quinn, author, syndicated columnist
"Most people should simply have index funds so they can keep their fees low and their taxes down." Jack Meyer, CEO, Harvard Management
"Four years ago I was a fan of index funds. Today I am a true believer." Jonathan Clements, senior writer, Wall Street Journal
"We find that on average, active management reduces a portfolio's returns and increases its volatility compared with a static index." Vanguard Investment Counseling & Research Analysis
"They're just not going to do it (beat the market). It's just not going to happen. Daniel Kahneman, Nobel Laureate
"I was not always an obnoxious indexing zealot. Ten years of believing in and selling active management strategies in the brokerage industry made me this way." Rick Ferri,CFA, author, financial adviser
"Active portfolio management thus tends to generate lower returns and higher taxes." John Haslem, author,
"Indexing virtually guarantees you superior performance. Bill Bernstein, author, financial adviser
"Index funds save on management and marketing expenses, reduce transacton costs, defer capital gain, and control risk--and in the process beat the vast majority of actively managed mutual funds." Good & Hermansen, authors
"In every asset class where they are available. Index! Four of five funds will fail to meet or beat an appropriate index." Frank Armstrong, author, financial adviser
"With an index fund--the certainty of keeping up with the market is a very worthwhile trade-off for the possibility of beating it. Jack Brennan, CEO Vanguard
"Searching through a list of 234 domestic equity funds that have survived for 20 years, only 31 did better than the Vanguard 500 Index. That means the odds are really, really poor that any of us will do better than a low-cost broad index fund." Scott Burns, syndicated columnist
"Choosing actively managed funds is the triumph of hope over reason and experience." Larry Swedroe. author, financial adviser.
"It's just not true that you can't beat the market. Every year about one-third do it. Of course, each year it is a different group." Robert Stovall, investment manager
"Giving up the futile pursuit of beating the market is the surest way to increase your investment efficiency and enhance your financial peace of mind." Ron Ross, author and adviser.
"It is basically impossible to beat the market." Prof. Eugene Fama
"Indexing is a marvelous technique, I wasn't a true believer, I was just an ignoramus. Now I am a convert. Indexing is an extraordinarily sophisticated thing to do." Douglas Dial, former CREF portfolio manager.
"Simple buy-and-hold index investing is one of the best, most efficient ways to grow your money. Michael Lebouf, Ph.D., author
"The best plan for most of us, is to commit to buying some index funds and do nothing else." Charles Ellis, author
"With the market beating 91% of surviving managers since the beginning of 1982, it looks pretty efficient to me." Bill Miller, portfolio manager
"We should just forget about choosing fund managers and settle for index funds to mimic the market." Pat Regnier, former Morningstar analyst.
"Because active and passive returns are equal before cost, and because active managers bear greater cost, it follows that the after-cost return from active management MUST be lower than that from passive management." Wm Sharpe, Nobel Laurete
"The most efficient way to diversify a stock portfolio is with a low fee index fund." Paul Samuelson, Nobel Laurete
"We find that on average, active management reduces a portfolio's returns and increases its volatility compared with a static index implementation of the portfolio's asset allocation policy." Vanguard study
"Buy and hold. Diversify. Put your money in Index Funds." Justin Fox, Fortune senior writer
"Index funds save on management and marketing expenses, reduce transaction costs, defer capital-gain, and control risk--and in the process, beat the vast majority of actively manage mutual funds." Good & Hermansen, authors
"You should switch all your investment in stocks to index funds as soon as possible, after giving proper consideration to any tax consequences." Chandan Sengupta, author.
"I am somewhat skeptical about anyone's ability to consistently beat the market." Moshe Milevsky, author
"With an index fund--the certainty of keeping up with the market is a very worthwhile trade-off for the possibility of beating it." Jack Brennan, Vanguard CEO
"With a very simple and basic understanding of index funds, you can consistently beat 70% to 80% of all professionally managed index funds." Tweddell & Pierce, authors.
"Invest in a stock index mutual fund. What a brilliant, ingenious, common sense idea that I can't take credit for, but can religiously pass along to those of you who want to unclutter your financial lives and own a sophisticated portfolio." Bill Schultheis, author
"For most of us, trying to beat the market leads to disastrous results." Prof. Jeremy Siegel, author
"The surest way to make money in the stock market is not to work very hard at it. Don't try to outsmart the market; settle for matching it. Put most of your money in an index mutual fund." Gary Belsky, author
"My strongest commitment in the mutual fund arena is to index funds." Richard Young, editor
"I recommend that the long-term buy-and-hold portion of your equity portfolio be invested in equity mutual funds." Sheldon Jacobs, author
"The smartest thing people can do if they want money in the equities market is buy an index fund that is run for 30 basis points a year and forget about it." Elliot Spitzer, NY Attorney General
"The only consistent superior performer is the market itself and the only way to capture the superior consistency is to invest in a properly diversified portfolio of index funds." Rex Sinquefield, researcher.
"It's extremely difficult to beat the market." Peter Brimlow, Forbes senior editor
"There can be no question that indexing for most categories of taxable invesor and for most marketable conditions, will outperform conventional active management." Robert Arnott, CEO First Quadrant
"A passive index fund managed by a not-for-profit investment management organization represents the combination most likely to satisfy investor aspirations." David Swensen, author
"The S&P index benchmarks outperformed their active peer funds in all nine Morningstar style boxes over the past ten years." Gus Sauter (1-25-05)
"It's amazing to me that, by one estimate, only 14% of money is indexed in this country!! What a shame." Lynn O'Shaughnessy, author
"I continue to believe that unless you are extremely skilled (and lucky) for most investors, index funds remain the simplest and most efficient vehicle for investing in stocks." Annette Thou, author
"When you realize how few advisors have beaten the market over the last several decades, you may acquire the discipline to do something even better: become a long-term index fund investor." Mark Hulbert, newsletter tracker.
"Most investors should simply invest in index funds." Robert Rubin, Former Secretary of the Treasury