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University of Chicago professor Eugene Fama (Photo: Barbel Schmidt)

Is the Market Rational? No, say the experts. But neither are you--so don't go thinking you can outsmart it.

5,829
by Eugene Fama
Tuesday, December 3, 2002

Buy and hold. Diversify. Put your money in index funds. Pay attention to the one thing you can control--costs--and keep them as low as ...Read More

Article Library

  • ETF Tax Efficiency and Swapping Strategies

    7,033
    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

    49,310
    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

    51,541
    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

    5,589
    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

    5,121
    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

    6,122
    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

    4,712
    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

    5,052
    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

    6,077
    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

    4,733
    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

    5,306
    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

    5,536
    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

    5,727
    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

    5,217
    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

    5,688
    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

    9,368
    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

    5,876
    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

    6,367
    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

    5,316
    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

    7,095
    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

    5,055
    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

    4,975
    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

    5,300
    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

    5,185
    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

    5,063
    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

    8,373
    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

    5,227
    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

    12,568
    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

    4,846
    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

    5,000
    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

  • Larry Swedroe

    There Is Trouble In 401(k) Land

    5,310
    by Larry Swedroe — Tuesday, July 16, 2002

    The historical record provided by academic studies is very clear that the winning investment strategy is to invest in funds that are passively-managed index funds, exchange-traded funds (ETFs), and passive asset class funds. Unfortunately, a conflict of ...Read More

  • John Spence

    Russell Indexes Gain Market Share

    5,452
    by John Spence — Wednesday, July 3, 2002

    Russell indexes are becoming more widely accepted by institutional investors, according to a recent study of over 3,6000 U.S. equity products listed in Nelson Information's Marketplace Web database. The 10 most commonly used U.S. equity benchmarks are ...Read More

  • Big Board Launches Four New Indexes

    5,132
    by IndexFunds.com Staff — Thursday, June 27, 2002

    The New York Stock Exchange today launched four equity indexes that track the performance of NYSE-listed stocks from broad market sectors. ...Read More

  • Barclays to Launch Fixed-Income ETFs in July

    5,785
    by IndexFunds.com Staff — Wednesday, June 26, 2002

    San Francisco-based Barclays Global Investors today announced that four iShares tied to bond indexes will begin trading on the American Stock Exchange on July 26. The fixed-income ETFs, the first to trade in the U.S., will be linked to the Lehman 1-3 Year ...Read More