GMO versus Vanguard: Assessing the Performance of Comparable Funds

8 Pages Posted: 4 Nov 2010 Last revised: 9 Nov 2010

See all articles by Edward Tower

Edward Tower

Duke University - Department of Economics; Chulalongkorn University-Economics Department

Date Written: October 1, 2010

Abstract

GMO is a well known mutual fund company that serves wealthy clients. The minimum investment for a mutual fund account is 10 million dollars. GMO’s web site is a font of useful and entertaining information. Should the Vanguard investor who can’t afford to invest with GMO be envious of the wealthy who have access to GMO funds? This paper asks whether the GMO funds that have similar Vanguard counterparts over‐return or under‐return their Vanguard counterparts, and by how much. Some of the Vanguard counterparts are indexed. Thus, this paper also provides evidence on whether stock pickers can beat indexers.

Suggested Citation

Tower, Edward, GMO versus Vanguard: Assessing the Performance of Comparable Funds (October 1, 2010). Available at SSRN: https://ssrn.com/abstract=1701949 or http://dx.doi.org/10.2139/ssrn.1701949

Edward Tower (Contact Author)

Duke University - Department of Economics ( email )

213 Social Sciences Building
Box 90097
Durham, NC 27708-0204
United States
919-660-1818 (Phone)
919-684-8974 (Fax)

Chulalongkorn University-Economics Department

Bangkok
Thailand

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