Author Topic: Charts Inaccurately Favor Index  (Read 2159 times)

mrpercentage

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Charts Inaccurately Favor Index
« on: October 12, 2015, 09:09:10 PM »
I look at things a lot and the numbers don't match up some times. For example, the numbers have mutual fund PAMCX spanking the indexes but the charts show just the opposite with the exception of portfolio visualizer. Does anyone have a logical explanation for this? The actual performance favors PAMCX even after the fees. The charts show the opposite. Foul play?

Exhibit 1. PAMCX is portfolio 1 VSCIX portfolio 2 VMCIX portfolio 3 and I included the 500 index.

then look at yahoo I highlight PAMCX in thick blue


finally google

MDM

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Re: Charts Inaccurately Favor Index
« Reply #1 on: October 12, 2015, 09:26:59 PM »
Did you try Morningstar?  Also note that PAMCX is a "mid-cap growth" fund so you might want to compare vs. the "mid-cap growth" index VMGIX.

Morningstar shows PAMCX performing better than VMGIX.

mrpercentage

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Re: Charts Inaccurately Favor Index
« Reply #2 on: October 13, 2015, 12:44:42 AM »
Thank you MDM. Im actually referencing those because they are available in my 457 and I wanted to mix in some Vanguard. I don't want to get crazy because I like it simple but was thinking 50% PAMCX and 50% VSCIX. That would give me 50/50 mid and small cap. I also have VINIX available but want to play a little more aggressively for long time growth. For Vanguard I have VINIX, VMCIX, VSCIX, and VBTLX available. I thought about mixing and creating my own VTI with PAMCX replacing the mid cap but decided that was nuking it and that I should just keep it simple. I also have Fidelity's Contrafund and a few other well performing funds. You all sold me on some low costs but still am not convinced to go 100% index with the options I have available.

The charts threw me through a loop when making comparisons. I kept wondering why my 457 was saying its long term performance was way better then the charts were showing.

Ramparts

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Re: Charts Inaccurately Favor Index
« Reply #3 on: October 13, 2015, 09:23:11 AM »
The Yahoo charts are just price charts - ie: what people were trading shares for that day, adjusted for splits. The total return also includes the dividends, but that isn't reflected in the graph (aside from the small blue D icons at the bottom). On Yahoo you can look at the Adjusted Close price by clicking on Historical Prices, since the Adj. Close reflects dividends & splits. I don't know why they don't have a way to graph things based on Adj. Close though - Portfolio Visualizer definitely helps get a more accurate picture of things IMHO.

The returns on PAMCX do look quite nice, though who knows if they will continue to outperform in the future. Also just a heads up that they seem to frequently have short-term capital gains distributions, by looking at the "Dividend and Capital Gains Distributions" on Morningstar. That shouldn't matter in a tax-advantaged account, but in a taxable account it would more negatively impact your returns, depending on your specific tax situation.

uwp

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Re: Charts Inaccurately Favor Index
« Reply #4 on: October 15, 2015, 01:49:47 PM »
Ramparts is right, Yahoo and Google don't take into account dividends when they chart mutual funds, so a 5% dividend (or distribution) shows up in the chart as the fund dropping.  They are just charting the net asset value.

Best bet is to use Morningstar when comparing mutual funds.