Don’t buy and hold these 20 closet tracker funds

10 min Read Published: 05 Oct 2017

It remains one of the biggest deceptions within the fund management industry - The closet tracker!

The debate over whether you should invest in active funds (those run by a manager) or passive funds (those run by computers that hug an index) rages on. Yet 80-20 Investor subscribers know that I think the argument is pointless. 'Passive champions' point out the low cost of trackers and active management underperformance while active managers shout from the roof tops when they actually do outperform passive investments.

The reason why you shouldn't care is that you should focus on the net performance after charges. Then you can compare apples with apples. That is why all 80-20 Investor published fund performance data is net of charges.

But there is a flaw to the whole debate that no one seems to point out and that is the assumption that once you've made your choice you have to stick with it! 

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