Do you choose the best performing funds?

We don’t factor in a fund’s past performance when we’re picking funds. Reason being, past performance is often a terrible predictor of future performance. If anything, funds that have outperformed recently are often the funds most likely to underperform going forward. ‚Äč

Mountains of research consistently show that the best predictor of future returns is cost; low-cost funds tend to outperform high-cost funds over time, regardless of past performance.