I just saw the news reported in the Wall Street Journal earlier today that Vanguard has received $250 billion in net inflows so far through October, compared to $236 billion in net inflows through all of 2015. About $200 billion of those Vanguard inflows have been invested in index funds.
I understand the collection of events that have caused index funds to be fashionable. The industry of financial advisors has always been a bit slithery and morally suspect, and the net results from holding an ownership interest in the S&P 500 has a fantastic track record of late.
Post recession, the S&P 500 has returned 14.8% annually since 2009. The S&P 500 nearly doubled between 2009 and 2012, and then has returned 13% annually since 2012. Given that index funds at places like Vanguard have such low fees, these cited results are a close approximation of the results actually achieved … Read the rest of this article!