Articles (180)

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  • Mark Hebner

    Dimensional Fund Advisors: A Deeper Look At The Performance

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    by Mark Hebner and Murray Coleman — Updated: Wednesday, December 4, 2019

    As many of our readers know, we don’t think too highly of the active mutual fund industry. Not because we have a personal vendetta against them, but because their pursuit of attempting to outperform the market using other investors’ money has only enriched themselves ...Read More

  • IFA Contributors

    Where are the Customers' Yachts? A Good Hard Look at Wall Street

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    by Mark Hebner — Updated: Friday, June 26, 2020

    Once in the dear dead days beyond recall, an out-of-town visitor was being shown the wonders of the New York financial district. When the party arrived at the Battery, one of his guides indicated some handsome ships riding at anchor. He said, “Look, those are the ...Read More

  • Tom Allen and Mark Hebner

    T. Rowe Price: A Deeper Look at the Performance

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    by Mark Hebner and IFA Contributors — Updated: Monday, February 10, 2020

    T. Rowe Price has clearly stated their value proposition to their investors. But what exactly is that value and, more importantly, who is receiving the bulk of that ...Read More

  • Mark Hebner

    Standard Deviation

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    by Mark Hebner and Murray Coleman — Updated: Monday, January 13, 2020

    In the field of finance, standard deviation represents the risk associated with a security or the risk of a portfolio of ...Read More

  • Rex Sinquefield

    Active vs Passive Management

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    by Murray Coleman — Updated: Tuesday, June 25, 2019

    Active management is the art of stock picking and market timing. Passive management refers to a buy-and-hold approach to money management. It can be applied to any asset class: big stocks, small stocks, value or growth, foreign or domestic can all be accessed by passive ...Read More

  • Mark Hebner and IFA Contributors

    Profitability and a Four-Factor Model

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    by Mark Hebner and IFA Contributors — Updated: Tuesday, May 21, 2019

    When constructing or evaluating a domestic equity portfolio, Index Fund Advisors has traditionally utilized the three-factor asset pricing model that Professors Eugene Fama and Ken French introduced1 in 1993. This model states that the expected return of a broadly diversified ...Read More

  • Murray Coleman

    Invesco: A Deeper Look At the Performance

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    by Murray Coleman — Updated: Monday, December 23, 2019

    To many investors, Atlanta-based Invesco Ltd. is an investment management conglomerate with a history of acquisitions and multi-asset platforms that spans the globe. With more than $1.18 trillion in assets under management, it's involved in everything from mutual ...Read More

  • Mark Hebner and IFA Contributors

    Misuse of the Law of Large Numbers: The Gambler's Fallacy

    27,215
    by Mark Hebner and Murray Coleman — Updated: Tuesday, September 15, 2020

    If you have ever spent any time in a casino, it is likely that you have seen supposedly random events that appeared to be non-random. Perhaps the roulette wheel came up red seven times in a row, for example. If your reaction was to place a large bet on ...Read More

  • Mark Hebner and Murray Coleman

    Eugene Fama: One of A Kind

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    by Mark Hebner and Murray Coleman — Updated: Thursday, December 19, 2019

    Academics are a hallmark of the investment strategy that we recommend to our clients. While there are plenty of sales pitches professing some sort of new or “hot” idea on how to get rich quick, we rely on peer-reviewed academic research to guide the decisions that we ...Read More

  • Mark Hebner

    Asset Location

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    by Mark Hebner — Updated: Thursday, August 15, 2019

    An additional way that a passive advisor can add value is not just asset allocation but asset location. Specifically, for a client that has a mixture of taxable accounts, traditional IRAs, and Roth IRAs, it is often helpful to construct a single portfolio consisting of multiple ...Read More

  • Mark Hebner and IFA Contributors

    The Funded Ratio: An Actuarial Approach to Retirement Spending

    22,865
    by Mark Hebner and IFA Contributors — Updated: Wednesday, June 26, 2019

    In a recent Financial Professional Outlook, Russell Investments surveyed 234 financial advisors across 145 investment firms nationwide. According to their results, 60% of advisors said that more than half of their clients are near or in ...Read More

  • Brad Steiman

    Paradox of Skill

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    by Brad Steiman — Updated: Tuesday, July 9, 2019

    Manager selection is a process that requires analyzing noisy performance data, so it should lean heavily on the notion of statistical ...Read More

  • Ian Liew

    SBBI: The Almanac of Returns Data

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    by Ian Liew and IFA Contributors — Updated: Friday, July 19, 2019

    Stocks, Bonds, Bills, and Inflation (SBBI) is often characterized as the Almanac of returns data. This magisterial work originally produced by Roger Ibbotson and Rex Sinquefield is considered the go to place when information is needed on the expected returns and risks of a ...Read More

  • Mark Hebner

    Advisor Risk - How Would You Rate Your Advisor's Risk?

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    by Mark Hebner — Updated: Friday, November 1, 2019

    When it comes to investing, we can identify many risks investors assume, either knowingly or not. At Index Fund Advisors, we see it as our core mission to get investors to take the risks that are worth taking (e.g. market, size, value, term and default) and avoid the ones that ...Read More

  • Mark Hebner

    Rebalancing Portfolios [VIDEO]

    19,804
    by Mark Hebner and Murray Coleman — Updated: Tuesday, August 20, 2019

    It is important for investors to rebalance their portfolio to achieve risk control and maintain long-term investing ...Read More

  • Mark Hebner

    Cash Withdrawal Considerations

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    by Mark Hebner — Updated: Thursday, July 18, 2019

    IFA is often in the position of accommodating regular cash withdrawal by its clients. The question is how to best generate cash for ...Read More

  • Mark Hebner and IFA Contributors

    The Never-Ending Pursuit of Manager Alpha – Updated

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    by Mark Hebner and Murray Coleman — Updated: Tuesday, August 20, 2019

    As we have pointed out on many occasions, both stock picking and hiring an active manager to pick stocks on your behalf are mug’s games. While some investors diligently study individual stocks and other investors handsomely pay active managers to deliver alpha (an ...Read More

  • Mark Hebner and IFA Contributors

    Advisor Alpha: The View from Vanguard

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    by Mark Hebner and Murray Coleman — Updated: Thursday, August 15, 2019

    At Index Fund Advisors, we have repeatedly cautioned investors to avoid getting ensnared in the never-ending pursuit of alpha by either picking stocks or hiring an active manager to pick stocks on their behalf. Nevertheless, by engaging in a few prudent practices such as ...Read More