Timeline for Difference between bond fund and bond index fund

4 events

when toggle format	what		by	license	comment
Jun 23, 2018 at 23:32	comment	added	Harper - Reinstate Monica		It must be operating off a different index than you think, then. An index fund that beats the index widely is doing something strange. Active funds also invlude a great deal of skill and research, and that can give them advantage, just not enough to beat the index by more than their fees.
Jun 23, 2018 at 21:11	comment	added	JoJo		I agree with you that most active funds are operating out of magic and luck, but what explains FIJEX's huge advantage over index (see the graph)? I've looked at other active funds and they're not as wildly off from the index as FIJEX is. SWSBX is the passive index with a similar portfolio of short term US Treasuries, but it doesn't have the same returns.
Jun 22, 2018 at 3:15	comment	added	Ben Voigt		Just like with stock mutual funds, bond index funds have to pay fees to subscribe to the index -- they need to add and remove assets from the fund on the same day the index does, in order to track its performance. Being 2-6 weeks behind (waiting for SEC filings concerning the changes) is just not acceptable. So depending on the indexing method, there may still be intelligence picking the basket of equities, but the costs are spread over all funds following the same index.
Jun 21, 2018 at 21:42	history	answered	Harper - Reinstate Monica	CC BY-SA 4.0