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Jim Wiandt

Diversifying Your Portfolio with International Equities

by Jim Wiandt
Friday, September 27, 2002

So you've got a house, a broad section of the U.S. stock market, and some bonds. You think you're diversified? Think ...Read More

Article Library

  • 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

  • John Spence

    SEC Clears the Way for Fixed-Income ETFs

    by John Spence — Wednesday, May 29, 2002

    In an open meeting, the Securities & Exchange Commission today gave the initial go-ahead to Barclays Global Investors to launch domestic fixed-income exchange-traded funds. Barring a hearing on the matter, in 25 days the SEC will issue orders granting BGI ...Read More

  • Dunn's Law Revisited

    by Frank Armstrong — Thursday, May 23, 2002

    Occasionally even serious financial columns mention Dunn's Law as if it were an accepted economic maxim. It isn't, and it's dangerous to pretend that it might be. ...Read More

  • John Spence

    Rebalancing Reduces Portfolio Volatility

    by John Spence — Wednesday, May 22, 2002

    Buy low, sell high. It's perhaps the oldest and most familiar of investment axioms. However, investors who neglect to periodically rebalance and let their portfolios run off the leash may not end up living by this ...Read More

  • Feel the Rush of Trading ETFs

    by Richard Evans — Friday, May 17, 2002

    On May 14, when the markets shot up for the second day in a row, did you feel an urge to get in on the action? Yes, I know we all have our standard asset allocation related to our age and so forth. And we're supposed to just let it be. But that's like ...Read More

  • SEC Proposes Mutual Fund Ad Rules

    by Staff — Wednesday, May 15, 2002

    The Securities & Exchange Commission (SEC) is seeking comment on proposed rules designed to ensure mutual fund advertisements aren't misleading to investors. The Commission specifically cited fund ads that touted skyrocketing performance in 1999 and 2000 ...Read More

  • John Spence

    ETFs Defy Traditional Classifications

    by John Spence — Tuesday, May 14, 2002

    Due to their unique structure and operations, exchange-traded funds don't fit neatly into traditional fund classifications. Data providers and industry observers still haven't decided for sure how to pigeonhole ETFs. In particular, several methods can be ...Read More

  • John Spence

    ETF Tax Efficiency Part 2 - In Defense of Index Funds

    by John Spence — Thursday, May 9, 2002

    Yesterday we posted an article on exchange-traded fund (ETF) tax efficiency. We looked at how ETFs function and why proponents claim they will be more tax efficient than traditional index mutual funds over time. We also posted data from ETF researcher ...Read More

  • John Spence

    S&P to Launch Hedge Fund Index

    by John Spence — Wednesday, May 8, 2002

    There seems to be an index for just about anything these days, so why not a benchmark for hedge funds? Standard & Poor's said it is set to launch an index that seeks to tame this unique asset class. The new index will be made up of 40 funds broken into ...Read More

  • John Spence

    ETF Experts Look at Tax Efficiency

    by John Spence — Tuesday, May 7, 2002

    One of the most compelling reasons for investing in exchange-traded funds is their potential heightened tax efficiency relative to traditional index mutual funds. Although most ETFs have a relatively short amount of history behind them, some researchers ...Read More

  • John Spence

    Index Spotlight: Russell Style Indexes

    by John Spence — Monday, May 6, 2002

    Recently we looked at the performance disparity between two small-cap blend indexes: the S&P SmallCap 600 and the Russell 2000. We found that subtleties in index methodology can lead to different results in indexes designed to track similar market ...Read More

  • Capital Asset Pricing Model

    by Frank Armstrong — Wednesday, May 1, 2002

    If Bill Sharpe's first thesis had been accepted, the world of finance might look a lot different today. Fortunately, after the paper was rejected as so uninteresting that there "was absolutely no thesis there," Sharpe was introduced to Harry Markowitz. ...Read More

  • Index Spotlight: Fortune 500

    by Staff — Monday, April 29, 2002

    As passive investing continues to catch on with mainstream investors, understanding the differences between equity indexes is becoming critical for many. Benchmarks that are highly correlated and similar on the surface can oftentimes behave very ...Read More

  • Paul B. Farrell,

    New 12-Step Program for Indexers

    by Paul B. Farrell — Friday, April 26, 2002

    Last Updated: 12:10 AM ET Apr 26, 2002 12-step program for investing in index funds LOS ANGELES (CBS.MW) - I love surfing the web. You go looking for one thing, and you run across a new gem that's so good it makes you forget what you're looking for. Like the "12-Step ...Read More

  • Large Growth Editors' Picks

    by Staff — Wednesday, April 24, 2002's favorites funds and ETFs for the large growth category are as follows. Click on any fund name for more details, the funds are not listed in order of ...Read More

  • Small Growth Editors' Picks

    by Staff — Wednesday, April 24, 2002

    Loved by active managers and shunned by indexers, the small-cap growth sector nonetheless has a handful of excellent index fund ...Read More

  • Small-Cap Value Editors' Picks

    by Staff — Wednesday, April 24, 2002

    Many of the cleverest indexers favor heavy weighting of the small-cap value sector. Our favorites include the following. Click on any fund name for more details, the funds are not listed in order of ...Read More

  • Mid-Cap Value Editors' Picks

    by Staff — Wednesday, April 24, 2002

    Recommended mid-cap value funds mirror their mid-cap growth siblings. Click on any fund name for more details, the funds are not listed in order of ...Read More

  • Large Blend Editors' Picks

    by Staff — Wednesday, April 24, 2002

    For large blend, we suggest the following funds that offer both value and growth. Most are S&P 500 funds. Click on any fund name for more details, the funds are not listed in order of ...Read More

  • Epitaph for a Doomed Fund

    by Staff — Monday, April 22, 2002

    Indexers often talk about "seeding and weeding" of funds in the abstract, which does not always convey the reality of the wreckage created by these practices. Seeding is the frequent launch of new active funds in hopes that a few will shine, and weeding ...Read More

  • Dividends and ETFs

    by Staff — Friday, April 19, 2002

    The structure of an exchange-traded fund can influence its returns, especially when it comes to dividends that companies pass on to shareholders. For example, SPDR 500, by far the largest ETF, is a unit investment trust (UIT). This type of structure ...Read More

  • Select Sector SPDR Changes

    by Staff — Friday, April 19, 2002

    ETF investors should know that a big rebalancing is on the horizon for the Select Sector SPDRs. On June 24 the nine Select Sector SPDRs will rebalance to look more like the ten Global Industry Classification Standard (GICS) sector definitions. GICS is a ...Read More