I'm a pretty big believer in low-cost index funds as the end all be all for 95% of investors. I'm pretty much a Boglehead. However, I'm curious about actively managed funds when it comes to the edge of the quality spectrum, specifically emerging/frontier market stocks. If there ever was a case against passively managed index fund equity investing, surely it would be in these edge "inefficient market" examples where the lack of public information about these opaque sectors would give an edge to those with the time/expertise that active management offers.
For example, Vanguard's actively managed emerging market fund ($VMMSX - 0.9% exp ratio), has largely beaten its passively managed big brother ($VEMAX - 0.14% exp ratio) for the past several years now.
In summary, should people switch from something like VEMAX to VMMSX? Naturally, each actively managed fund is different, so what about in this specific Vanguard example?
Submitted May 21, 2017 at 03:13PM by xmr_eric http://ift.tt/2qIS2jE
