This is the second reason why indexing outperforms actively managed funds over the long term (The first reason is the fees).
Price weighed index fund rebalances regularly and never misses out those best-performing four percent. Actively managed fund manager might do a good job valuing companies and might catch some success stories, but it's unlikely that they catch them all consistently.
Price weighed index fund rebalances regularly and never misses out those best-performing four percent. Actively managed fund manager might do a good job valuing companies and might catch some success stories, but it's unlikely that they catch them all consistently.