The ETF industry has made a mockery of hedge fund managers. Warren Buffett is on the precipice of winning a 10 year $2 million bet against an active manager, for waging $500,000 that the mundane SPY would trounce his funds over a 10 year time frame. Said fund manager only managed to eek out ~2% annual returns since then, humiliating himself in the process.
Excluding dividends, the S&P 500 is up ~13% this year. Not too many fund managers can claim to be up that much.
According to Barclay’s, the hedge fund industry is woefully underperforming the market as a whole this year, sporting just ~6% returns. Naturally, to get a pure apples to apple comparison, we’d need to ex out bond funds and special situation arbs. Nevertheless, I think it’s fair to say the vast majority of hedge funders can’t trade to save their lives and are crushed on a regular basis vs static, boring, low fee, ETFs.
Here are some of the top performing unleveraged ETFs this year. Let me know if your manager beat these.
GBTC +487%
XIV +99%
KWEB +69%
CQQQ +66%
EMQQ +65%
BRF +61%
LIT +61%
BBC +55%
PLND +55%
REMX +51%
ARKG +51%
Any investment themes flow from Trump’s neocon-written war-mongering speech before the UN; where he trashed and threatened Syria, Iran, N Korea, Venezuela, Cuba?
Yeah, GD
GD is sweet, thanks. I tipsied into SOIL not so long ago.
Sad thing is Buffett is probably worried about much og cherry coke he has stocked in his bunker
2 Rules for a good life:
1. Never pay someone to manage your money or investment, just buy ETFs and. Hold them. Sorry but this includes Exodus which doesn’t beat holding SPY long term at a 15% tax rate
2. Never live in the suburbs. Choose city or country, there is no “best of both worlds”, there is only the worst of both worlds – aka suburbs
Benny must be a government mole.
Government wants all of us consolidated in large cities. Easier to manage and control that way.
As the masses lean towards “just buy ETFs/passive and hold forever” leads me to believe active will start to out perform. I can’t wait for folks like you to bare witness to a 1970s style stock market.
Benny
I’ve found that the people who often talk like you, eschewing the country life of the suburbs for the riots of the city have two main motives.
1. They are midwestern transplants who finally moved to the city after 3 decades of a boring life.
2. Unsuccessful people who cannot afford a nice home in the country, unable to find a wife and raise a family.
Which do you belong to?
I grew up in the city, stood there until my late 30s. It is a crime rich cesspool of ill repute. Good to visit, dreadful to live inside.
I said country is great, re-read my post. What about all of those people who made your friend rich on his Brooklyn realestate are just like me then? My urban neighborhood is very safe, it depends where you live.
Yes I did grow up in a boring place, and when I moved to the city 20 years ago I knew I would never leave.
Your #2 makes no sense at all. A home in my neighborhood is literally 6x the price of the same house in, say, Vermont. Cities are far more expensive in these parts.
I’m raising a family here.
And my BMI says I am not overweight and i have a full head of hair!
BOOM
Bennyshill is also fat and bald with a severe case of adult acne. His stepchildren loathe him.