Why I use ETF's
On Yahoo Finance, I used its mutual fund screener. I
wanted the ten best large cap blend mutual funds because I want to compare them
to
CGMFX, JSVAX, IJCSX, HIACX, MFQTX, RFNFX, HRCVX, CLVFX, RYSRX, NPRTX
I sorted the list by top performance for three years and managers needed to
have at least three years with the fund.
Above is a three year chart, noticed the dispersion. Below is a one year chart.
Mutual Fund managers or should I say active managers introduce a level of risk or uncertainty. Manager risk is less predictable than asset class risk so replace manager risk with more risky asset classes such as small cap, emerging market, high yield bonds.
Investing is about risk budgeting, the better you budget investment risk the better your investments will perform.
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