I wonder if the results would be different if SPY--the SPDR--trading was taken out of the calculation since a lot of the heavy dollar trading there are institutions?
I would be interested in comparing ETF's and mutual funds on similar platforms, for example self directed retirement accounts. Structurally more mutual fund's are allowed and used for 401k retirement platforms, which might skew the data in favor of mutual funds due to the extra layer of trading complexity/availability. Great stuff! My take away is, keep investors away from their long term accounts and that'll help close the behavioral gap.
Thanks for reading and great comment. I wish I had that kind of data but alas not. I think you are definitely onto something w re to why OE funds fared better. The 401k has likely proved beneficial as a kind of gilded cage, keeping investors in the game and mitigating risk of costliest blunders.
Thank you for writing this!
Well thanks so much for reading it, Andrew. Greatly appreciated!
I wonder if the results would be different if SPY--the SPDR--trading was taken out of the calculation since a lot of the heavy dollar trading there are institutions?
Good question. When I removed it it didn't change the picture -- the gap between ETFs'' aggregate dollar-weighted and total returns didn't shrink.
Interesting. Thanks for checking.
I would be interested in comparing ETF's and mutual funds on similar platforms, for example self directed retirement accounts. Structurally more mutual fund's are allowed and used for 401k retirement platforms, which might skew the data in favor of mutual funds due to the extra layer of trading complexity/availability. Great stuff! My take away is, keep investors away from their long term accounts and that'll help close the behavioral gap.
Thanks for reading and great comment. I wish I had that kind of data but alas not. I think you are definitely onto something w re to why OE funds fared better. The 401k has likely proved beneficial as a kind of gilded cage, keeping investors in the game and mitigating risk of costliest blunders.