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by epolanski 6 days ago
Yes, but not in the last decade or so.

In any case, it's been only in the last years that we have had an explosion of a huge variety of funds with low fees, so some of these product strategies need to be retro fitted for a time they did not exist.
1 comments
infecto 6 days ago
Please cite funds that beat passive indexes over long periods of time.
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epolanski 6 days ago
Medallion, Renaissance, Dodge, Sequoia.

But I don't think that's what you were really asking.

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infecto 6 days ago
Interesting those are value funds? Of course that was not what I was asking or what this thread was about.
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epolanski 6 days ago
Your question is still not what you're asking. Passive funds do nothing but follow indexes, so what you're really asking is "have value indexes ever beaten the general sp500 index?".

And the answer is yes, e.g. both the S&P 500 Value Index and S&P 500 Pure Value Index have beaten the S&P 500 historically.

Small Cap indexes, have also *significantly* outperformed the S&P 500 from 1927 till today (a compounded 13.1% annual growth).

Value stocks represent companies whose price-to-book is particularly attractive compared to the underlying business, and since investing is tied by the sell/buy ratio, buying at a discount improves it. Needless to say, value stocks require more risk, and risk is directly related to potential growth.

Small caps, are both riskier and have a much larger room to grow, they have significantly outperformed the SP500 since 1927.

Neither value nor small caps have done well, in the last decade, as the financial markets have multiple times provided better returns to a small but heavy portion of the market that was neither risky nor at any point had particularly attractive price-to-book ratios.

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infecto 6 days ago
No you’re just assuming what I am asking. You have proven my point so thank you. No examples and lots of buts and exceptions. We are probably talking around each other to some degree but that’s ok!
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epolanski 6 days ago
Not sure what I have proven.

I gave you numbers and names of indexes that have historically beaten the S&P 500 index in the value category.

All of those have one or more ETFs that replicate that index.

There's an extensive amount of scientific literature talking about the outperformance of value and small caps to the broader market, starting from Nobel price winning Eugene Fama.

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