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How Much International???

6,165
by Frank Armstrong
Wednesday, December 25, 2002

Many investors avoid international exposure in the mistaken belief that they are avoiding unnecessary risk. In fact, by failing to diversify cross border they actually substantially increase their risk. Token positions do little benefit the portfolio. The ...Read More

Article Library

  • Strategy vs. Outcome

    10,017
    by Frank Armstrong — Thursday, December 12, 2002

    Investing is a noisy process. In the short term, it is extremely difficult to distinguish between cause and effect. In the longer term, even with the best planning, wide variations in results must be expected. Investors must make decisions in an ...Read More

  • John Spence

    Interview with Morningstar's Peter Di Teresa

    6,265
    by John Spence — Tuesday, December 10, 2002

    Peter Di Teresa is a consultant at Chicago-based Morningstar, Inc. Before moving on to a new role within Morningstar, he wrote the "Ask the Professor" column that frequently addressed issues concerning index investing. ...Read More

  • More ETF Advantages - Diversification & Costs

    6,104
    by J.D. Steinhilber — Thursday, December 5, 2002

    In a previous article we looked at the tax benefits of exchange-traded funds, as well as fund swap strategies to harvest portfolio losses. This time we continue on with more ETF ...Read More

  • ETF Tax Efficiency and Swapping Strategies

    7,219
    by J.D. Steinhilber — Wednesday, November 20, 2002

    Exchange-traded funds are inherently more tax efficient than actively managed mutual funds, which have been rightly criticized for their tax-inefficiency. Tax-efficiency is a critical issue for advisors and investors because delaying the taxation of ...Read More

  • Total Domestic ETF Assets Over $100 Billion

    49,483
    by IndexFunds.com Staff — Tuesday, November 19, 2002

    There are currently 281 exchange-traded funds listed around the world, with over $140 billion in assets under management, according to a new report by Boston-based indexing giant State Street Global Advisors. ...Read More

  • John Spence

    A Look At the New Bond ETF Families

    51,746
    by John Spence — Friday, November 15, 2002

    After years of development and regulatory hurdles, fixed-income ETFs have finally hit the market. San Francisco-based Barclays Global Investors beat ETF Advisors to the punch with a family of iShares tied to Lehman Brothers bond indexes. New York-based ...Read More

  • First ADR Index ETFs Begin Trading on Nasdaq

    5,747
    by IndexFunds.com Staff — Wednesday, November 13, 2002

    Four new exchange-traded funds tied to Bank of New York American Depository Receipt (ADR) indexes began trading on the Nasdaq Exchange today. Called BLDRS, the new members of the ETF family will have expense ratios of 0.30%. The Bank of New York will ...Read More

  • The Consulting Game

    5,304
    by Frank Armstrong — Tuesday, November 12, 2002

    The one thing Wall Street tells you that you can always take to the bank is: "Past performance is no guarantee of future performance." Of course, they really hate telling you that, but they are required to. The rest of Wall Street's message is designed to ...Read More

  • John Spence

    Interview with Mutual Fund Gadfly, Roy Weitz, of FundAlarm.com

    6,273
    by John Spence — Tuesday, November 5, 2002

    Roy Weitz, CPA is the founder of FundAlarm.com, an independent and noncommercial website that serves as an unofficial community watchdog for the mutual fund industry. Mr. Weitz writes a revealing and colorful monthly commentary on the industry that is ...Read More

  • Spitzer Roasts Stock Analysts at Awards Ceremony

    4,869
    by IndexFunds.com Staff — Monday, November 4, 2002

    Imagine being invited to an award banquet only to find out later the main course is . . . you. That's exactly what happened to Wall Street analysts at the annual ceremony for Institutional Investor magazine's "All-Star Research Team" awards earlier this ...Read More

  • New ETF Advisers Fixed-Income ETFs Begin Trading

    5,235
    by IndexFunds.com Staff — Friday, November 1, 2002

    Four new U.S. Treasury exchange-traded funds began trading today on the American Stock Exchange. The new funds, introduced by ETF Advisers, track Treasury securities with one, two, five and 10-year maturities. Called "fighters" - Fixed Income Trust ...Read More

  • John Spence

    How Advisors Harvest Tax Losses with ETFs - The Basics

    6,280
    by John Spence — Thursday, October 31, 2002

    Financial advisors often use index fund tax-swap strategies as a way to maintain equity exposure while offsetting realized or unrealized gains in a portfolio, which is the closest thing to a free lunch in investing. Exchange-traded funds are becoming a ...Read More

  • Total ETF Assets Decline in September

    4,940
    by IndexFunds.com Staff — Tuesday, October 29, 2002

    Total exchange-traded fund assets declined over $9 billion in September to about $82 billion, according to the Investment Company Institute. The ICI, the trade group for the mutual fund industry, keeps monthly tabs on ETF ...Read More

  • First ETFs Tracking Dow Jones Global Sector Indexes Introduced

    5,468
    by IndexFunds.com Staff — Wednesday, October 23, 2002

    Dow Jones Indexes said Credit Suisse Asset Management has licensed some of its global Sector Titans indexes for ETFs to be launched later this week. The new ETFs will be tied to the Dow Jones Banks Titans 30, the Dow Jones Technology Titans 30, and the ...Read More

  • John Spence

    Interview with Ron Ross, Author of The Unbeatable Market

    5,716
    by John Spence — Wednesday, October 23, 2002

    Ron Ross is the author of a new book entitled The Unbeatable Market: Taking the Indexing Path to Financial Peace of Mind. This one caught our attention because of its accessability, and also because the author refuses to pull punches when it comes to ...Read More

  • Two New European ETFs Begin Trading

    5,877
    by IndexFunds.com Staff — Tuesday, October 22, 2002

    UBS Global Asset Management introduced two new exchange-traded funds: the Fresco Dow Jones STOXX 500 (FEU) and the Fresco Dow Jones Euro STOXX 50 (FEZ). The new ETFs, which track the European and Eurozone markets, began trading on the New York Stock ...Read More

  • John Spence

    Q&A with Khalid Ghayur, MSCI Index Development

    5,379
    by John Spence — Friday, October 18, 2002

    Khalid Ghayur knows a thing or two about indexes. He is global director of research and chief investment strategist for index provider Morgan Stanley Capital International (MSCI). Mr. Ghayur, who answered our questions from his Princeton office, is ...Read More

  • John Spence

    Interview with Gus Sauter, Vanguard Index Fund Manager

    5,903
    by John Spence — Wednesday, October 16, 2002

    As managing director of the quantitative equity group at Vanguard, Gus Sauter oversees the management of $200 billion in 24 index funds. He is also responsible for the management of $4 billion in Vanguard's actively-managed funds, and $1 billion in ...Read More

  • Editors' Model Portfolios

    9,670
    by IndexFunds.com Staff — Wednesday, October 16, 2002

    Finding index funds that make up the building blocks of a diversified portfolio is important, but fitting them together is the real challenge. For our favorite index funds covering various asset classes, please see our editors' picks. ...Read More

  • Editors' Model Portfolios - Slice & Dice

    6,076
    by IndexFunds.com Staff — Wednesday, October 16, 2002

    This portfolio is a very simple interpretation of slice and dice, with large caps coupled with small value. This portfolio deviates from the total stock market approach by overweighting small value stocks. ...Read More

  • Editors' Model Portfolios - Core & more

    6,524
    by IndexFunds.com Staff — Wednesday, October 16, 2002

    This portfolio shouldn't be confused with the strategies that involve active funds. The idea of core and more is to lay down a core portfolio and explore by overweighting certain asset classes. Core and more portfolios can take on many shapes and sizes ...Read More

  • Editors' Index Fund Picks - Domestic Bond Funds

    5,508
    by IndexFunds.com Staff — Tuesday, October 15, 2002

    Bond index funds can reduce risk in a portfolio. Indexing bonds also makes sense because of their lower yields compared to stocks. We like short-term bonds because of their low risk and lack of correlation with equity ...Read More

  • Fund Manager Knows Best

    7,422
    by Neil Weinberg — Monday, October 14, 2002

    As other corporations come clean, mutual funds still gloss over costs, hide top-dog pay and keep secret how they cope when self-interest conflicts with ...Read More

  • Third Quarter Index Wrap

    5,236
    by IndexFunds.com Staff — Tuesday, October 1, 2002

    A sagging stock market continued to drag down most equity indexes in September, and third quarter returns were likewise ugly. The broad Russell 3000 index fell 16.2% during the third quarter on the heels of a 13.1% decline in the second quarter, according ...Read More

  • S&P Releases Methodology, Constituents of New Hedge Fund Index

    5,160
    by IndexFunds.com Staff — Thursday, September 19, 2002

    Standard & Poor's unveiled the list of forty hedge funds in its upcoming benchmark that will seek to track the largely unregulated industry. The S&P Hedge Fund Index will be divided into three sub-indexes with funds broken down by investment style: ...Read More

  • John Spence

    Investors Buy High and Sell Low with Sector Funds

    5,468
    by John Spence — Tuesday, September 17, 2002

    The pundits always lecture us about not chasing performance, but perhaps seeing the carnage investors inflicted upon themselves with ill-timed sector fund investments the past few years is the best way to make that lesson stick. ...Read More

  • John Spence

    FTSE Introduces Global Style Indexes

    5,352
    by John Spence — Thursday, September 5, 2002

    Index provider FTSE Group yesterday launched a new family of global growth and value equity benchmarks. They include new country-specific style indexes covering developed and advanced emerging markets nations, as well as regional and global benchmarks for ...Read More

  • John Spence

    Index Providers Must Now be Proactive

    5,214
    by John Spence — Tuesday, September 3, 2002

    "Innovate Or Evaporate." That's what it says on the Fortune mouse pad on my desk, compliments of the venerable magazine publisher that also manages a family of equity benchmarks. In light of recent events, other index providers would do well to adopt that ...Read More

  • Larry Swedroe

    The Most Important Determinant of Investment Returns

    8,670
    by Larry Swedroe — Friday, August 23, 2002

    Financial economists have demonstrated that the most important determinant of a portfolio's return is its asset allocation - the exposure to equity (and within equities the exposure to the risk factors of size and value) and fixed income (and within fixed ...Read More

  • New Bond ETFs Enable All-ETF Portfolios

    5,410
    by J.D. Steinhilber — Tuesday, August 6, 2002

    Barclays Global Investors recently introduced four exchange-traded funds that track fixed-income indexes, and the move represents a critical and long-awaited development for ETF investors. Bonds are an important part of a balanced portfolio because of the ...Read More

  • John Spence

    How the S&P 500 Rebalance Affects Index Funds

    13,090
    by John Spence — Thursday, August 1, 2002

    Standard & Poor's index committee decided in July to replace seven foreign stocks in the S&P 500 with domestic ones, and the shift affects countless index investors. For example, the Vanguard 500 fund was the nation's largest mutual fund at the end of ...Read More

  • John Spence

    ETF Assets Dip Below $90 Billion After May Highs

    5,021
    by John Spence — Tuesday, July 30, 2002

    After clearing the $90 billion asset plateau for the first time in May, combined assets of the 102 exchange-traded funds listed in the U.S. fell to $88.95 billion in June, according to the latest figures from the Investment Company Institute. ...Read More

  • John Spence

    Vanguard to Introduce Three International ETFs

    5,184
    by John Spence — Tuesday, July 23, 2002

    The Vanguard Group today filed an application with the SEC to introduce exchange-traded fund shares for three of its existing international index funds. Pending SEC approval, European Stock Index, Pacific Stock Index, and Emerging Markets Stock Index will ...Read More