Every quarter Standard & Poor's issues its "Index Versus Active Funds Scorecard" and seldom does the picture change. On average, index funds beat active managed funds, both US and international.

For those who want to take advantage of this, you can now invest in the new Vanguard Total World Stock Index Fund. The new fund seeks to track the investment performance of the FTSE All-World Index, a benchmark of approximately 2,900 stocks in 47 countries. It includes large and mid-cap stocks with 59% in developed and emerging international markets and 41% in the US markets.

I like the fact that you can now passively invest in the entire world with one fund. The only issue is that its expense ratio is a tad high at 0.45%. They also have an ETF which has a lower expense ratio of 0.25%.

 

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