I sometimes ponder how brokers and advisors choose this fund over that one.
After all, economic theory suggests that they all tend to perform in tandem with others investing in the same asset class. In such a case, the lion’s share of performance variation will be attributable to how much is charged to run the fund. Absent the advisor’s own pecuniary interests, I wonder if the choice isn’t totally arbitrary. Sort of akin to reaching into a barrel of monkeys and pulling out the first one you grab hold of.