Comparing mutual funds against ETFS

[Dmy0013]

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]

For Vanugard specific mutual funds and ETFs they link you to the comparable ETF on the website.  For Example VTSAX

[forummm]

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]

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]

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]

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]

Portfolio visualizer has many useful options as well.

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

[MDM]

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]

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]

And here's the result of this long bet as of today.
Doesn't look pretty.

[MustacheAndaHalf]

Or, from the hedge fund's viewpoint:  "We beat the S&P in 2015!"  (By +1.7% vs +1.4%)