%0 Journal Article %A John C. Bogle %T An Index Fund Fundamentalist %D 2002 %R 10.3905/jpm.2002.319840 %J The Journal of Portfolio Management %P 31-38 %V 28 %N 3 %X This article revisits the author's 1998 study, which showed the superiority of low–cost equity funds over their high–cost alternatives for the five years ending 1996. Updating through 2001, the author again demonstrates that low–cost funds outperform high–cost funds on both an absolute and a risk–adjusted basis, and by an even greater margin than the cost differential would suggest. This pattern persists for equity mutual funds as a group, and in each of the nine Morningstar style boxes. Following this logic, as typically the lowest–cost alternatives in their category, index funds would be expected to rank among the top–performing funds in a category. As in his 1998 article, the author finds this is true—index funds outperform their actively managed counterparts in eight of the nine style boxes. %U https://jpm.pm-research.com/content/iijpormgmt/28/3/31.full.pdf