Index Funds

Can anyone pick funds that will beat the market? Numerous studies show it’s impossible to accomplish this simply by selecting funds that have performed well in the past. Although we’re confident that we possess the tools and experience to pick funds that will top their benchmarks, we can’t guarantee success, and undoubtedly our picks may sometimes lag index funds. Because of this as well as other considerations—chiefly taxes—we favor index funds or Exchange Traded Funds (ETFs) for some clients.

Index funds don’t try to beat the market. They aim merely to match the performance of a given index—be it the Dow Jones industrial average, Standard and Poor’s 500-stock index, the broad-based Wilshire 5000 index. or the Russell 3000 index.

Naturally, some index funds are better than others. Fees vary. In addition, some index funds do a better job keeping up with their benchmarks than others. Our challenge is to assemble and maintain the right mix of index funds for each client from the hundreds available.