Quantcast
Are you getting the best rate from your broker?
Compare your broker's rates now to find out if you can save money

Choose your broker below
Thank you for selecting your broker
We are redirecting you to the Broker Center now
Welcome to Dividend.com. Please help us personalize your experience.

Select the one that best describes you
Thank you for your submission, we hope you enjoy your experience
ALERT

‘Trump Bump’ Forces out MedTech Company from Best Dividend Stocks List

Dividend logo

Here are a few pretty damning statistics provided by Bank of America Merrill Lynch analysts. Only 14% of active managers are beating their benchmarks so far this year.

Over the last ten years, only 7% of managers of large-cap growth funds managed to beat their chosen indexes. The number is a little better when looking at large-cap blend funds, but not by much. It’s even worse if you live in Europe and own stocks through a mutual fund. Nearly all – as in 99% – of active managers have failed to outperform their benchmarks since 2006.

The culprit isn’t that everyone stinks at stock picking. That simply isn’t the case and the stats mentioned above don’t mean that investors lost money over these time periods. It’s simply that they haven’t met their benchmarks. The real reason for misses comes down to something we never really think about, and that’s costs.

What we pay for our investments has a huge impact on our bottom lines and in the case of mutual funds or ETFs, it can mean underperformance and, ultimately, having less money for critical needs like retirement.

But luckily, we can control costs, once we understand their impact.

To read the Full Story, Go Premium or Log In

Popular Articles

News

Royal Bank of Canada Sees 2.5% Decrease in Dividend

Each day, companies across the globe announce new upcoming dividend payouts. Last week there were...

Premium Shutterstock 552351427
News

Why Real Risk Involves Valuation

Financial academics define risk as volatility. But while a stock or a mutual fund that bounces...

News

Morgan Stanley Leads 79 Stocks Going Ex-Dividend This Week

There are 79 stocks going ex-dividend this week starting Monday, Jan. 22. For income investors...