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Major U.S. Index Returns for October 2002 - Benchmarks Bounce Back

by Staff
Monday, November 4, 2002

The Dow Jones Industrial Average gained 11% for the month of October to close at 8427.41, according to Dow Jones Indexes. This represents the largest one-month gain in the index since January 1987. The Dow Jones Industrial Average is down 15.91% for the ...Read More

Article Library

  • Spitzer Roasts Stock Analysts at Awards Ceremony

    by 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

    by 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

    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

    by 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

    by 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

    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

    by 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

    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

    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

    by 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

    by 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

    by 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

    by 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

    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

    by 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

    by 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

    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

    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

    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

    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

    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

    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

    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

    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

    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

    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

    by 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

    by 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

  • Most Slumping Equity Indexes in Red for the Year

    by Staff — Friday, June 21, 2002

    After surging ahead earlier this week, most equity indexes fell sharply going into the weekend. It wasn't a great week for most equity fund investors, and a look at 1-year index returns shows pain has been the norm over the last 12 months. As a result, ...Read More

  • ETF Total Assets Top $90 Billion

    by Staff — Thursday, June 20, 2002

    The total assets of all exchange-traded funds that trade in the U.S. rose to $92.86 billion in May 2002, according to the Investment Company Institute, the mutual fund industry's trade group. Total ETF assets increased by $7 million in May, with domestic ...Read More

  • John Spence

    Sector ETFs are Relatively Cheap, but Still Carry Risks

    by John Spence — Monday, June 17, 2002

    In what seems like both a blessing and a curse for retail investors, exchange-traded funds offer the ability to invest in thin equity market slices cheaply relative to traditional sector mutual funds. According to Morningstar, the average sector mutual ...Read More

  • The Motley Fool

    Stockaholics Anonymous

    by The Motley Fool — Thursday, June 13, 2002

    The physical signs are impossible to conceal: sweating and increased palpitations at every market blip or earnings announcement; an uncontrollable twitch in your "trading finger"; that involuntary trance-like draw to the sound of Maria Bartiromo's voice; ...Read More

  • John Spence

    Index Spotlight: Dow Jones Style Index ETFs

    by John Spence — Tuesday, June 11, 2002

    Currently there are exchange-traded funds available that track style indexes from Russell, Standard & Poor's/Barra, and Dow Jones. At first glance these indexes seem similar, but as we've seen before subtle differences in index methodology can lead to ...Read More

  • The Case for International ETFs

    by J.D. Steinhilber — Wednesday, June 5, 2002

    A long-standing tenet of investing is that a diversified portfolio should include a meaningful foreign stock component. During the awesome bull market in U.S. stocks in the late 1990's, however, many investors and advisers began to challenge this premise. ...Read More

  • May Wrap-Up

    by Staff — Monday, June 3, 2002

    Here's how major equity indexes fared in May 2002, broken down by index ...Read More

  • John Spence

    How the ETF Arbitrage Pricing Mechanism Works

    by John Spence — Monday, June 3, 2002

    Research indicates that most buy-and-hold investors are primarily drawn to exchange-traded funds for their lower expense ratios and potential tax efficiency. Most passive investors are not interested in trading during the day, but the ability to do so ...Read More

  • John Spence

    Lipper Introduces 'Active' Indexes

    by John Spence — Thursday, May 30, 2002

    New York-based fund research firm Lipper last week launched several equity indexes based on actual stocks held by mutual funds from various categories. Lipper joins its competitor fund tracker Morningstar in launching equity indexes that could be the ...Read More

  • Larry Swedroe

    Active Small-Cap Managers Add Value: Myth or Reality?

    by Larry Swedroe — Thursday, May 30, 2002

    One of the more persistent claims from Wall Street is that the inefficiency of information in small-cap stocks allows active managers to exploit market mispricings and outperform passive benchmarks. It is important to note that part of this claim is true ...Read More