ByJosh Katzowitz, WCI Content Director
At The White Coat Investor, we adore index funds. They provide better returns than actively managed funds or individual stocks. They cost less. They provide less risk. And they take up less of your time.
Better to contribute to VTSAX (where you’re investing in about 4,000 stocks with a tiny expense ratio) or FSKAX (one of the largest funds in the world that, as of this writing, has beaten the Dow Jones index that it tracks for its entire history) than to pay somebody to try (and probably fail) to get better returns.
As investing guru Taylor Latimore has said, index funds allow you “to spend your time working, playing, or doing anything else while your nest egg compounds on autopilot. It’s about as difficult as breathing and about as time-consuming as going to a fast-food restaurant once a year.”
Today, I want to have some fun and create our own WCI Fund to see how it performs against VTSAX (the Vanguard Total Stock Market Index Fund)…
This article was written by Josh Katzowitz and originally published on www.whitecoatinvestor.com