Re: Time to get my feet wet; Vanguard Mutual Funds
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The fact that growth stocks have outperformed value stocks for periods over a decade is somewhat meaningless. Tracking error is a necessity of decorrelated assets.
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Tracking error is a problem. When people see their portflio that is supposed to be riskier than the market and outperform the market underperform for a long period of time they are likley to alter their asset allocation, hurting investment returns.
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