As we all know, 85-90% of active funds can’t beat the index S&P500 over a 10 year period. What is omitted is the fact that most funds are not designed to be “index beaters.” A huge portion are rules based, or designed around dividends, hedging risk, investing themes, covered call income, etc.
When people buy something like SCHD, the goal isn’t to beat the S&P500. It’s to generate high dividends. However funds like SCHD are rolled into that “85-90% of funds” talking point like it’s a checkmate.
Also.. we hold up VOO and VTI as these end all be all investment, and just pretend like QQQ doesn’t exist.. pay no attention to the other major American index. It definitely doesn’t exist.
Lastly, there are over 10,000 publicly traded funds. Let’s be super conservative and say 50% aren’t designed to beat the S&P500 (it’s definitely way higher).. are we saying that only 1000-1500 out of 5,000 can outperform the index over a 10 year period? Truly I don’t hate those odds at all.
I will now assume the position and let you take turns lashing me. Come on daddies, tell me how Warren Buffett, the guy that made all his money buying individual stocks, disagrees with me.