Re: Can someone explain tax advantages to owning an index fund?
I do no business with Legg Mason, other than owning Bill Miller's funds, but here is some data on the fund I spoke about above. Richie Freeman is a legend.
10 year returns
SHRAX 15.49% annual return pretax, 15.22% post-tax.
VFINX 8.83% pretax, 8.27% post-tax. The drag is literally 2x as the active fund due to additional turnover from the so-called 'passive' index.
As we all know, the SP500 is really an actively managed list of stocks, just a real big one.
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