Not at all. Your comparison graphs are from January 2011. I said Dec 2011, not January 2011. In January 2011 ARG and AFI were at a slight premium, not a discount. In December 2011 they were at a discount, which is the point you challenged me to prove (that if buying ARG or AFI at a discount, you'll beat the index in the long term). If you run the numbers from 31 Dec 2011 to date: XJO=39.3%, AFI=45.4%, ARG=50.4%. Even better, run the numbers from 31 March 2012 when the discount to NTA was even bigger for both companies, you get XJO=32%, AFI=41.5%, ARG=47.5%, an even bigger spread, exactly as you'd expect:- the bigger the discount, the greater the outperformance, because you're effectively just buying the index but at a discount. Buying AFI or ARG at a 10% discount is like buying $1 index ETF shares for 90 cents each. Great time to buy.
Right now though, they're trading at close to NTA, so you're unlikely to get any major outperformance, but you should still match the index pretty closely (over the long term).
You're complaining about a 0.16% MER? That's less than just about all the ETFs on the market and certainly less than any managed fund. What exactly are you going to passively invest in that has an MER less than 0.16%?