I understand what you're saying, and it all applies to professional money managers, but the fact remains that index funds over the long haul consistently and reliably beat about 90% of all actively managed funds, managed by people who should know all of the stuff you are talking about.

Index funds have lower costs, are incredibly tax efficient, have significantly less risk, and have lower volitility than most managed funds because they are incredibly diversified.

If you are worried about capital gains and having greater tax efficiency, you can invest in ETF's.

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Paul S.

2001 E430, Bourdeaux Red, Oyster interior.
79,200 miles.

1973 280SE 4.5, 170,000 miles. 568 Signal Red, Black MB Tex. "The Red Baron".