My results from the second month of my Passive Versus Active Portfolio Experiment are now in. They are as follows:
Month 2 Results
Passive: I had one transactions this month; a dividend reinvestment. My passive portfolio increased by a total of 10.32%. This gain includes the commission that would have been charged had I liquidated my position at the end of the month. My dividend reinvestment is not subject to a commission.
Active: I had five transactions this month; 3 purchases and 2 sales. My active portfolio increased by a total of 1.91%. This gain includes commissions, including the one I would have been charged had I liquidated my third position at the end of the month.
Benchmark: During the same time period, the S&P 500 increased by 1.97%. For the first time, one of my investment portfolios (active) failed to beat the benchmark for the month. My passive portfolio significantly outperformed the benchmark this past month.
Overall Results to Date
After two months, my passive investments have taken the lead in profitability. Both my passive and active investments have beaten the benchmark return of the S&P 500.
Passive Return to Date: 21.56%
Active Return to Date: 13.99%
Benchmark Return to Date: 10.69%
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June 24th, 2009 at 7:03 am
Ouch! Big difference this month.
Also - I’ve been seeing a lot of blog posts pop up lately regarding professional investorts, mutual funds, and individual investors starting to switch over to index funds.
Maybe they’re finally catching on?
July 6th, 2009 at 7:39 pm
Are month 2 percentages on an annual basis or the return you got month over month.
Same question for the ‘return to date’ percentages. Are they how much you have earned since you initially invested or on an annualized basis?
July 7th, 2009 at 5:49 am
@David Percentages given are not annualized. So month 2 percentages are the gain for the last month and month 2 return to date is the gain of the past 2 months.
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