ETFs vs. Mutual Funds
ETFs Charge Lower Fees ETFs Generally Outperform Most Mutual Funds

ETFs Generally Outperform Most Managed Mutual Funds

In any given year, only about one-third of equity mutual funds match the performance of their benchmark indexes. In fact, the average equity mutual fund lags its benchmark by about 2% annually. Because ETFs are designed to track the performance of well-established indexes, rather than to actively strive for outperformance, they make it possible for you to benefit from a well-diversified portfolio that is not subject to the whims and historical inconsistency of most active managers.

1,446 Large Cap Blend Mutual Funds vs the S&P 500 Index
10 years ending Oct 2004
1,411 Mutual Funds Under Performing the S&P 500 Index
35 Mutual Funds Out Performing the S&P 500 Index

Source: Morningstar,
Taken from: "The Daunting Odds of Stock Picking", Index Funds Advisors, Inc.

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