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. ​

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.