/Finance

Index funds replicate a market index — like the S&P 500 or the IBOVESPA — without any attempt at active asset selection. The most powerful argument in their favor is not gross return, it is **net return**. SPIVA studies show that over 90% of active funds fail to outperform their benchmark index over 15-year periods. Every tenth of a percentage point in management fees silently erodes wealth over time — the investor's invisible enemy. > **Key point:** most professional managers do *not* beat the index over the long run — and the ones who do charge dearly for it. Investing in index funds is not resignation. It is recognizing that market efficiency and low cost are structural advantages. For most investors, it is the smartest decision they can make. --- | Data | Value | |---|---| | Active funds that underperform the index (15 years) | +90% | | Average index fund fee | ~0.03% | | Average active fund fee | 1% to 2% | --- *As Jack Bogle, founder of Vanguard, once said: "In investing, you get what you don't pay for."*