Do mutual funds usually beat out SPY (disregarding fees)?

Rally Health / Other PJtucks
Aug 16 6 Comments

I started my Roth IRA this year and found that Fidelity has some zero-commission / zero-fee mutual funds. It seems that they perform the same as VTI or SPY. Am I missing something, or is using Fidelity's free mutual funds the best route?

Do mutual funds usually beat out SPY (disregarding fees)?


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TOP 6 Comments
  • PayPal jckamfig
    Read books and figure it out. I learned it that way.
    Common Sense on Mutual Funds – John C. Bogle, David F. Swensen

    The Bogleheads’ Guide to Retirement Planning – Taylor Larimore, Mel Lindauer, Laura F. Dogu, Richard A. Ferri, John C. Bogle

    The Investor’s Manifesto: Preparing for Prosperity, Armageddon, and Everything in Between – William J. Bernstein, Jonathan Clements

    How to Think About Money – Jonathan Clements
    Aug 16 4
    • NVIDIA tronp
      Can you summarize the important takeaways?
      Aug 16
    • Twitch jellybeano
      The important takeaways:
      - buy individual stocks (mutual funds have lots of losers)
      - always buy on margin (use someone else's money!)
      Aug 16
    • Snapchat tresleche
      Why would you buy individual stocks on margin? That sounds like a terrible and risky strategy, and I’m not sure the returns justify the risk

      I heard it’s actually way better to do naked puts on all stocks. Your returns are like 10x in a very short amount of time!
      Aug 16
    • Twitch jellybeano
      Naked puts are the real winner, but for a newbie you want to go with the safest stuff. After about three months of my strategy, I would advise newbies to consider naked puts and straddles.
      Aug 16
  • Google The Old Nite
    That fund from fidelity is just an index fund not a mutual fund. It's just like VTI except offered by Fidelity. Couple things to note when going with a fund is their net assets (tells you how effectively the fund can track the index) and trade volume (how easily can you sell it for a fair price in the market).

    Mutual funds are actively managed by professionals (hence the fee) theory should give better gains because the professional would supposedly know what to do, but in practice most mutual funds don't outperform the broader market.
    Aug 16 0


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