Author Topic: Comparing mutual funds against ETFS  (Read 3364 times)

Dmy0013

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Comparing mutual funds against ETFS
« on: May 20, 2016, 01:35:10 PM »
Good afternoon,

Does anyone know of a website where I can punch in a stock or a mutual fund and compare it to a similar ETF and get 5 - 10 - 20 years of data for a comparison?

Cromacster

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Re: Comparing mutual funds against ETFS
« Reply #1 on: May 20, 2016, 01:49:00 PM »
For Vanugard specific mutual funds and ETFs they link you to the comparable ETF on the website.  For Example VTSAX

forummm

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Re: Comparing mutual funds against ETFS
« Reply #2 on: May 20, 2016, 02:03:16 PM »
What's the purpose of this? If you compare VTI to VTSAX, you're going to get one pretty line you can see, and an invisible one behind it tracing the same pattern. Since they own exactly the same stocks in the same proportions and payout the same dividends at the same times.

Cromacster

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Re: Comparing mutual funds against ETFS
« Reply #3 on: May 20, 2016, 02:06:04 PM »
What's the purpose of this? If you compare VTI to VTSAX, you're going to get one pretty line you can see, and an invisible one behind it tracing the same pattern. Since they own exactly the same stocks in the same proportions and payout the same dividends at the same times.

\_(ツ)_/

Dmy0013

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Re: Comparing mutual funds against ETFS
« Reply #4 on: May 20, 2016, 03:09:16 PM »
I guess you could say Its to win an "argument"

A friend of mine was telling me that mutual funds with a high MER are totally worth it because it is being actively managed, and you will come out way ahead.

I suggested that in my opinion I think an ETF in similar field as the Mutual fund with the high MER would have similar results if not better over a longer stretch of time.  Especially when you factor in the in savings in the MER

forummm

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Re: Comparing mutual funds against ETFS
« Reply #5 on: May 20, 2016, 05:24:14 PM »
Morningstar will let you compare mutual funds to ETFs. Get a quote for one and then click on the performance tab, then compare, then enter the other fund. It provides total returns including dividends. Google Finance will do the same thing, but excludes dividends.

Radagast

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Re: Comparing mutual funds against ETFS
« Reply #6 on: May 20, 2016, 07:12:43 PM »
Portfolio visualizer has many useful options as well.

https://www.portfoliovisualizer.com/backtest-portfolio

MDM

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Re: Comparing mutual funds against ETFS
« Reply #7 on: May 20, 2016, 09:05:25 PM »
Morningstar will let you compare mutual funds to ETFs. Get a quote for one and then click on the performance tab, then compare, then enter the other fund. It provides total returns including dividends. Google Finance will do the same thing, but excludes dividends.
+1

See https://www.bogleheads.org/wiki/How_to_use_Morningstar_growth_charts for even more details.

MustacheAndaHalf

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Re: Comparing mutual funds against ETFS
« Reply #8 on: May 20, 2016, 10:02:03 PM »
Dmy0013 - Your friend will win the bet, but for the wrong reasons: hindsight bias.  He'll pick a fund he knows did better than the S&P 500 or VTSAX over the past 10 years.  When you compare them after the fact, he can pick the best fund in hindsight, and claim some kind of victory.

But it's the wrong approach.  If he tries to pick a fund today that will beat the S&P 500 for 10 years, your chances are very good at winning the bet.  He could even pick the winner for the past 10 years, and it's still unlikely to beat a passive index fund.

Speaking of bets against the S&P 500, Warren Buffet made a $1 million wager the S&P 500 would outperform a portfolio of hedge funds.  Here's a description:
http://longbets.org/362/

Seppia

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Re: Comparing mutual funds against ETFS
« Reply #9 on: May 21, 2016, 12:45:21 AM »
And here's the result of this long bet as of today.
Doesn't look pretty.

MustacheAndaHalf

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Re: Comparing mutual funds against ETFS
« Reply #10 on: May 21, 2016, 12:51:50 AM »
Or, from the hedge fund's viewpoint:  "We beat the S&P in 2015!"  (By +1.7% vs +1.4%)