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Right, Troy...That's the price you pay to 'beat the index'. Maybe 50 or so basis points over an index fund. And with carefull selection, I do it. I'd gladly pay the extra expenses, little difference that there is, for a better chance at a stronger return. Much of the 'statistics' you hear regarding managed and passive funds is over-stated to a degree, I feel. Many managed funds are just plain poorly managed, & lacking ability, like any business could be, giving others a bad name. Good fund fundamentals, and especially one where the manager owns/invests in his own fund(I watch for this)--one with talent, and good management can beat the index more often than you think. (Especially true in the 'small-cap', & International area)Im not expecting it all the time...or every year...but in the long run, a combination of BOTH funds is more often than not, going to beat your index funds alone.
Bruce
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