The True Cost of Actively Managed Mutual Funds (according to Vanguard founder John Bogle)

The True Cost of Actively Managed Mutual Funds (according to Vanguard founder John Bogle)

Actively managed funds are expensive. And it's not just the expense ratio. From transaction costs to tax inefficiencies, and cash drag to load fees, the cost of actively managed funds all but guarantee they will underperform an index fund over the long-term.

In this video we take a look at a portfolio sent in by a viewer. The portfolio was recommended by PNC Bank. For just a $100,000 account, they recommend almost 20 funds, many with expense ratios over 1.00%. On top of that, PNC wanted to charge 1.24% to manage this mess.

Resources mentioned in the video

John Bogle's article: http://johncbogle.com/wordpress/wp-content/uploads/2010/04/FAJ-All-In-Investment-Expenses-Jan-Feb-2014.pdf
Personal Capital: https://robberger.com/go/personal-capital/yt-72921
Tools & Resources
Morningstar: https://robberger.com/go/morningstar/yt-72921

📚 My Book (of course): https://amzn.to/2MsRJ9B
📈 Personal Capital: https://robberger.com/go/personal-capital/yt-72921
💰 M1 Finance $30 Bonus: https://robberger.com/go/m1finance-bonus/yt-72921
🏆 Best Investment Tracking Apps: https://bit.ly/3wSbKZa

Portfolios

1️⃣ 3-Fund Portfolio: https://bit.ly/3yT6hmO
2️⃣ Merriman Ultimate Buy & Hold Portfolio: https://bit.ly/3g9qtse
3️⃣ Ray Dalio All Weather Portfolio: https://bit.ly/3cbzdwF
4️⃣ Warren Buffett Portfolio: https://bit.ly/3pdI8mm

ABOUT ME

While still working as a trial attorney in the securities field, I started writing about personal finance and investing In 2007. In 2013 I started the Doughroller Money Podcast, which has been downloaded millions of times. Today I'm the Deputy Editor of Forbes Advisor, managing a growing team of editors and writers that produce content to help readers make the most of their money.

I'm also the author of Retire Before Mom and Dad--The Simple Numbers Behind a Lifetime of Financial Freedom (https://amzn.to/3by10EE)

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DISCLAIMER: I am not a financial adviser. These videos are for educational purposes only. Investing of any kind involves risk. Your investment and other financial decisions are solely your responsibility. It is imperative that you conduct your own research and seek professional advice as necessary. I am merely sharing my opinions.

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Видео The True Cost of Actively Managed Mutual Funds (according to Vanguard founder John Bogle) канала Rob Berger