We lean towards the use of index funds since few active managers can consistently beat the market. In fact, during 2016, two-thirds of active managers of large-capitalization U.S. stocks underperformed the S&P 500 large-capital index. More than 90% of active managers underperformed their benchmark indices over a 15-year period. Active management also increases the cost to the investor and typically makes the investment less tax efficient. We are an approved provider of DFA funds, (Dimensional Fund Associates) a fund family well known for their index funds and low fees. We also utilize many Exchange Traded Funds (ETF’s) for their low cost and tax efficiency.
The bond portion of your portfolio typically consists of individual bonds which enables us to better manage the effect of interest rates on your portfolio and reduce costs.
We continually analyze both the performance of all client held investments and associated costs.