[d--b]

0.8% is substantial indeed, but if i understand correctly, it’s 0.8% on that one stock, so much less on the index itself.

Those funds that perform better probably take a higher management fee that might cancel out the gain. May be worth it to have a smoother return though.

[Panzer04]

As in, current indexes perform that much worse. Frontrunners around index rebalancing etc. SpaceX is the same idea, just way more obvious. People knows what the index funds are going to do, and so they exploit that.

The alternative funds are a little pricier, but not so much so as to negate the inherent performance advantage. Typical cost ratio is 0.1-0.5% depending on the niche (wide indexes are cheaper, more niche things like small cap value cost more)