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Originally Posted by Atlantis1
Haha oh sick. Thought 90% was really impressive, but then again I am total newby as far as investing and what not. Thanks for the info.
Saying "this fund is up 90% since 2009" is being somewhat misleading, since using 2009-present is cherry picking one of the best market runs ever. The market tanked in 2008, bottomed out early in 2009, and has since recovered. How did the fund do in 2008?
Whenever you're looking at a fund, compare it to the market over the same time period. SPY is a reasonable proxy for the market as a whole. You can also use VTSMX, which is the Vanguard total stock market fund. That fund is up 115% since 2009 and has an expense ratio of .1%. They charge 1/10th of the fund you were looking at, and it has performed better in the given time period. (The fund you were looking at may include bonds, which would explain the difference in performance).
Remember that past results are not a guarantee of future results. Far from it. Repeat this to yourself 10 times daily =).