genou wrote:swill453 wrote:genou wrote:OK, I'll bite, if you are willing. I nominate as the near ultimate passive VWRL. Inception date 22 May 2012. I'll leave you to pick the managed funds, on the criteria that they existed at 22 May 2012, and still exist today.
If an accumulator is too painful, then VEVE, 30 Sep 2014. Same rules.
VWRL isn't an accumulator.
Scott.
You are quite right. Never do TIDM's from memory ( Obviously too fixated on Vanguard ) . What I meant to say was
SWDA ( iShares Core MSCI World UCITS ETF ) , date of inception 25/Sep/2009. as an accumulator
SWDA is a good one as it is accumulating and priced in pounds. 10 year annualised return to 16/12/21 was 13.9%. I checked on the Morningstar web site for "Global Flex-Cap Equity" as that seems to be the most flexible category. There are 516 funds, but just 111 with a 10 year track record. Of those funds 33 (30%) beat SWDA, the best being Rathbone Global Opportunities Fund S Acc, with a 10 year rate of return of 17.5%. Worst performer was Kennox Strategic Value with 5.15% annualised return.
There may of course have been other funds that existed 10 years ago but did not survive. The main reason for not surviving is poor performance, so a 30% success rate flatters active management.
There is some multiple counting going on with these funds as some funds are listed more than once, with different share classes. To do this properly it would be best to go through picking out the lowest charging retail share class for each fund, but I suspect a similar result would be obtained.
In choosing an actively managed fund, retail investors are up against:
1) Most active funds underperform in the long run
2) Of those that do outperform, the outperformance is less than the underperformance of the worst performers.
In summary in order to outperform it is necessary to take on the considerable risk of significant underperformance AND underperformance is more likely than outperformance.
ps, just had a quick look at Global Equity Income Category to see how that did and it was even worse. Of the 305 funds that beat SWDA only 3 managed to beat it, all from CCLA, whoever they are. Top performer was CCLA CBF Global Equity Income Acc with 14.6%, worse ASI World Income Equity Fund A Acc at 4.8%.