Studies indicate that the Vanguard 500 Index fund tends to:
A)underperform most professional money managers.
B)produce a return equal to that of professional managers.
C)outperform the average professional money manager, but only over the short term.
D)outperform most professional money managers especially over longer periods of time.
E)support the argument that the stock market is inefficient.

Question

Quizplus · Accepted Answer

Studies have consistently shown that the Vanguard 500 Index fund outperforms the majority of professional money managers over longer periods of time. This is because the fund follows a passive investing strategy and aims to replicate the returns of the S&P 500 index, which has historically delivered solid returns over the long term. Therefore, investors looking for a low-cost, long-term investment option may consider the Vanguard 500 Index fund.

Studies Indicate That the Vanguard 500 Index Fund Tends To