Being Smart with $$ - Index funds: Low fee but usually better performance

Unmanaged U.S. stock index funds returned 2.2% more than their higher-fee, actively-managed peers over the last year.  The same index funds returned 0.5% more per year on average over the last 10 years.  (Through 11/30/16 per Money Magazine Jan/Feb 2017.)  That’s about $9,000 extra earned with the index fund over 10 years on just $100,000 invested.  Let me get this straight.  I pay a much lower fee for the index fund but usually get higher returns on average?   What’s the catch?  (Hint: Perhaps there isn’t one.)
- Larry Pike, CFA, Client Priority Financial Advisors LLC
- www.clientpriority.com