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Don't be Fooled by Style Drift

Style Drift is a divergence of a fund's holdings from the original investment philosophy of the fund, subject to what is outlined in the prospectus. Unfortunately, many funds use comparison benchmarks that may not hold many of the same securities. It’s paramount that you look under the hood of any funds that you own to help determine what is, and is not, the appropriate risk adjusted benchmark for comparison. One of the many advantages of low-cost, passively managed asset class and index funds can be their minimal style drift.