Thanks, I am interested in this comparison mostly because a younger relative of mine is getting into the investing game and she doesn't have very much to invest yet and would have to pay the 5.75% American Funds load.  So I was researching no load funds and index funds thinking those might be a better choice for her. 

KCallie:

Thanks, I am interested in this comparison mostly because a younger relative of mine is getting into the investing game and she doesn't have very much to invest yet and would have to pay the 5.75% American Funds load.  So I was researching no load funds and index funds thinking those might be a better choice for her. 

I believe you will find that Windsor II is a very close comparison.

Both have around 40% in large value.  Windsor II has considerably more mid-caps, but that adds better diversification.

The two funds are almost spot on in the three large sector categories.

Total returns are very close with AWSHX having 3,5, and 10 year returns of 8%, 11%, and 5.5%, ans WII having  7.5%, 13%, 5.5%.

WII has a slightly higher yield, but is slightly less growthy.

WII has about twice the number of stocks but share quite a few of the top ten and a lot of similarity in picks like one owns Merck and one owns PFE.

Needless to say, lower ER and no load.

 Anyway, something to consider if you want active management.

best,

Bill

bilperk:

I believe you will find that Windsor II is a very close comparison.

Both have around 40% in large value.  Windsor II has considerably more mid-caps, but that adds better diversification.

The two funds are almost spot on in the three large sector categories.

Total returns are very close with AWSHX having 3,5, and 10 year returns of 8%, 11%, and 5.5%, ans WII having  7.5%, 13%, 5.5%.

WII has a slightly higher yield, but is slightly less growthy.

WII has about twice the number of stocks but share quite a few of the top ten and a lot of similarity in picks like one owns Merck and one owns PFE.

Needless to say, lower ER and no load.

 Anyway, something to consider if you want active management.

best,

Bill

Thanks, Bill.  I am trying to test the hypothesis that index funds are the better option over the long haul than active managed funds.  My younger relative is a scientist like myself and so I am trying to gather the data for her.  I don't buy the comparison of all actively managed funds to index funds since that presumes that you can't make an informed choice as to an actively managed fund (which I don't believe).

I am already invested in American Funds and don't pay a very high load.  She would so for her, they may not be the right choice.  But if she can do better even with the load in select American Funds over the years, of course, she would be better off there.  I am just not sure until I crank the numbers.

I picked Washington Mutual fund to start with because one of the posters on another thread seemed unhappy to have that in her portfolio for the last 20 years.  It has done quite well for the last 20 years so I am confused as to why someone would think that was a bad choice, especially when she admits she doesn't want to sell it because the tax consequences would be great (which indicates to me it has been quite a good investment over the years). 

below is a similarity tool from vanguard. Not sure if it will help but it will narrow it down to a few vangard funds. 

https://personal.vanguard.com/us/funds/tools/findsimilarfund?Fund&FundIntExt=EXT#results

Hope this helps.

Eric

DBCooper:

below is a similarity tool from vanguard. Not sure if it will help but it will narrow it down to a few vangard funds. 

https://personal.vanguard.com/us/funds/tools/findsimilarfund?Fund&FundIntExt=EXT#results

Hope this helps.

Eric

Thanks, Eric - that is just what I am looking for!