Quote:
Originally Posted by DaFace
The idea of them sounds nice. I've always been skeptical that they'll outperform a simple index fund, though, once you account for a little bit in extra fees.
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Agreed. People see something like a higher return and think it's worthwhile. If the fees you pay for that return make your net gain less than an index, it's simply not worth it. I have found that people have a hard time adjusting for fee cost into their return. A small re-occurring fee may not seem like a lot, but 1-2% on a total investment, really IS a lot.