Minimize the Silent Partners

Index funds are an excellent way to minimize the effect of silent partners. Dimensional Fund Advisors and Vanguard are leading providers of tax-managed index funds with funds in many equity categories. While fees, transaction costs and taxes eat up active investors’ returns, index fund investors maximize asset growth by avoiding the major impacts of costs and taxes. No investment is completely free from silent partners, but passive investors use index funds, tax-managed index funds and ETFs to retain as much money as possible.

See Appendix A (

Step 7Dimensional Fund AdvisorsVanguardTax-ManagedIndex Funds