Performance Gaps

PTI currently tracks over 300 no-load and exchange traded funds in the US Large Cap Sector. Every month the 20 highest ranked funds within this sector are compared to the 20 lowest to show how big the Performance Gaps can be for fund’s within the Same Market Sector over the Same Time Period.

The comparisons shown below are as of April 15, 2021.

20 Highest20 LowestHighest vs Lowest
Annual Expenses:0.29%1.31%1.02% Lower
Dividend Yield:1.86% .23%1.63% Higher
1 Year Total Return:68.65%55.82%12.83% Higher
3 Year Annualized Total Return:18.27%11.95% 6.32% Higher
5 Year Annualized Total Return:17.47%12.40% 5.07% Higher
Fund Assets (Millions)$770,314$18,477

By any measure the lowest ranked funds have been Terrible Investments compared to the highest ranked. For whatever reasons, probably because investors don’t know about all the choices available to them Billions Are Invested In These Losers.

One of the advantages of fund investments is the ability to easily invest into the best fund’s available. Finding these funds is the first part of the Performance Tracking Investment Strategy, but the most important part of the process is the Ongoing Tracking to identify and exchange a fund with poor relative performance.

Lower Fees and Lower Fund Expenses combined with Higher Dividends and Better Performance could easily add 2% or more every year to an investors Total Return. The Securities & Exchange Commissions compound interest calculator (at www.investor.gov) shows how much this relatively small annual gain could add to the value of a portfolio over time. Depending on the size of the portfolio it could be worth thousands every year.