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  • Will McClatchy

    Active Fund Trading Costs Remain High

    5,043
    by Will McClatchy — Tuesday, January 22, 2002

    Many individual investors believe that professionally managed funds have a trading cost advantage over them, but this is not the case. A recent study suggests that smaller volume traders have gained the most ...Read More

  • John Spence

    SEC Reviewing Actively Managed ETFs

    4,682
    by John Spence — Thursday, January 10, 2002

    Not one of the currently 102 exchange-traded funds (ETFs) listed in the United States holding over $70 billion of assets in their coffers is actively traded. All are linked to equity benchmarks from the ...Read More

  • Vanguard Extended Market ETF Launches

    5,118
    by IndexFunds.com Staff — Friday, January 4, 2002

    Vanguard Extended Market VIPERs, the exchange-traded fund to track the Wilshire 4500 Completion Index, will begin trading on January 4, 2002, on the American Stock Exchange under the symbol VXF. Vanguard ...Read More

  • Mind Your Q's

    5,453
    by Max Issacman — Friday, January 4, 2002

    By far the most popular exchange traded fund (ETF) is the one that tracks the Nasdaq-100 Index, symbol QQQ. It has been this way since the Qs made their first appearance on March 10, 1999. On that day alone ...Read More

  • Larry Swedroe

    Never In Doubt, Often Wrong

    5,212
    by Larry Swedroe — Wednesday, January 2, 2002

    Economists, if they are smart, learn to never make forecasts, especially about the future. If they have to make a forecast, they learn to never give a number. And, if they have to give a number, they learn to ...Read More

  • John Spence

    News Roundup: Amex and Bank of New York

    4,684
    by John Spence — Monday, December 31, 2001

    Investors who use options to hedge portfolio risk got some welcome new tools for the chest. This week the American Stock Exchange (AMEX) began trading options on six iShares managed by Barclays Global ...Read More

  • Will McClatchy

    Index Tracking is a Secondary Goal

    5,173
    by Will McClatchy — Sunday, December 23, 2001

    As investors examine year-end performances of their index funds, one measure they should not focus on too closely is tracking error. Keeping a portfolio reasonably close to its intended index is desirable, but ...Read More

  • Will McClatchy

    Glimpse of "Convergence to Efficiency"

    4,658
    by Will McClatchy — Thursday, December 13, 2001

    A new study "Evidence on the Speed of Convergence to Market Efficiency" by Prof. Richard Roll of UCLA and colleagues demonstrates just how quickly competition squeezes out easy profits and offers glimpses of ...Read More

  • Tax Loss Selling Using Exchange Traded Funds

    4,528
    by Russ MacKay — Tuesday, December 11, 2001

    Tax loss selling has been an effective tax management tool used by savvy investors and portfolio managers for years. The concept is quite simple. You sell investment(s) that are in a loss position, and apply ...Read More

  • Larry Swedroe

    The Enron Debacle: Lessons To Be Learned

    4,865
    by Larry Swedroe — Friday, December 7, 2001

    In December 2000, with its stock trading at a peak of $85 per share, Enron had a market capitalization of over $60 billion, making it one of the largest U.S. companies. Less than one year later, with the stock ...Read More

  • Will McClatchy

    Bogle Cautions Indexers on ETF Speculation

    4,821
    by Will McClatchy — Wednesday, December 5, 2001

    Vanguard's founder denounced the speculative appeal of exchange traded funds before the largest annual US gathering of indexing faithful, who took the message to heart but felt that it understated how ...Read More

  • Explaining Stock Returns: A Literature Survey

    5,237
    by James Davis — Saturday, December 1, 2001

    Daniel and Titman (1997) doubt the risk-based explanation. They contend that it is "characteristics, not covariances," that produce return dispersion. For example, the risk-based story says that high BtM ...Read More

  • The Error Term

    6,015
    by Eugene Fama Jr. — Saturday, December 1, 2001

    Both cases have the same factor exposures and the same expected returns as the market. Cases 1 and 2, however, have significantly higher after-tax expected returns, especially in periods where dividend yields ...Read More

  • Being Socially Responsible All The Rage

    4,390
    by IndexFunds.com Staff — Wednesday, November 28, 2001

    Assets in socially responsible funds have continued to rise dramatically. According to a new report by the Social Investment Forum, assets under management in socially screened portfolios have topped $2 ...Read More

  • Will McClatchy

    ETFs for the Buy-and-Hold Investor

    4,774
    by Will McClatchy — Wednesday, November 21, 2001

    The buy-and-hold investor has as much to gain from ETFs as anyone. While media hoopla has focused on day traders using ETF, in reality ETFs' greatest strengths lie in their long-term features. Especially when ...Read More

  • Larry Swedroe

    Risk and Expected Return

    6,525
    by Larry Swedroe — Tuesday, November 20, 2001

    The last half of the twentieth century was a golden era for US equity investors. From 1950 through 1999 the S&P 500 Index produced annualized returns of 13.6% per annum, or a real rate of 9.2% per annum. Even ...Read More

  • iShares Global Sector Funds hit the Market

    4,731
    by IndexFunds.com Staff — Friday, November 16, 2001

    iShares continued its enthusiastic global expansion with the launch of the world's first global sector funds. The funds began trading today (11/16/2001) and cover global technology, telecom, energy, financials ...Read More

  • iShares Make Strong Gains as VIPERs Crack $1 Billion

    4,411
    by IndexFunds.com Staff — Friday, November 16, 2001

    ETF assets soared in the previous 2 weeks in a strengthening market that was coupled with strong investor interest in ETFs. The iShares continued their recent boom, with all of the top iShares funds enjoying ...Read More

  • Larry Swedroe

    The Road Less Travelled

    5,046
    by Larry Swedroe — Wednesday, November 14, 2001

    As they begin their journey, investors are faced with an immediate fork in the road-the choice between an active and a passive management strategy. Given the substantial body of evidence it seems clear that ...Read More

  • Jim Wiandt

    ETF Regulatory and Tax Complications

    4,978
    by Jim Wiandt — Friday, November 9, 2001

    Many of the early developers of ETFs say that it took a miraculous convergence of determination and circumstance to ultimately garner the approval of the SEC and get the new products off the ground. The basic ...Read More

  • The Societal Risk Premium

    5,028
    by William Bernstein — Thursday, November 8, 2001

    Financial economists like to talk about the risk-free rate: basically, the time value of money sitting in a perfectly safe vehicle. From an historical perspective per se, the very use of the term is ...Read More

  • Jim Wiandt

    Let The Commenting Begin

    5,500
    by Jim Wiandt — Wednesday, November 7, 2001

    The SEC today announced the long-awaited issuance of its concept release on actively managed exchange-traded funds (ETFs). Actively-managed ETFs increasingly threaten to invade the realm of ETFs, a space ...Read More

  • Fed Rates Lowered by Another Half Percent

    4,647
    by IndexFunds.com Staff — Tuesday, November 6, 2001

    Reacting to an economy that has slid into recession, the Fed lowered interest rates by another 50 basis points (0.50%) to 2%. Stocks climbed on the news. The Fed rates are now at a 40-year low. The move market ...Read More

  • Barclays Introduces First Natural Resource ETF

    4,925
    by IndexFunds.com Staff — Friday, October 26, 2001

    Barclays Global Investors began trading the iShares Goldman Sachs Natural Resources Exchange Traded Fund (ticker: IGE), the first ETF of its kind. The fund tracks the Goldman Sachs Natural Resources index, a ...Read More

  • Bogle Speaks!

    6,307
    by IndexFunds.com Staff — Friday, October 26, 2001

    John Bogle fans were treated to classic indexing discourse from the great pioneer of indexing at the recent AXA Rosenberg investor conference in Boston. ...Read More

  • S&P Includes REITs and Amex Adds Options

    4,746
    by IndexFunds.com Staff — Wednesday, October 24, 2001

    Standard & Poor's this month added several Real Estate Investment Trusts (REITs) to its US indexes for the first time. The firm recently concluded that REITs have become operating companies driving US economic ...Read More

  • Vanguard Debuts Term Life, Private Equities

    5,269
    by IndexFunds.com Staff — Monday, October 22, 2001

    The Vanguard Group expanded its line of financial services recently with term life insurance and private equity offerings offered only to its clientele as part of its strategy to offer one-stop shopping for ...Read More

  • Some Germans Stock Up on Index Certificates,

    4,598
    by Aviya Kushner — Thursday, October 18, 2001

    In the last year, when ETFs came to Germany, for us it didn't make sense to have index certificates. ETFs are better because there's more liquidity, a much smaller spread, and they're tradeable every day. ...Read More

  • History in Perspective - After the Storm

    4,583
    by IndexFunds.com Staff — Friday, October 12, 2001

    The stock market has recovered the more than $1 trillion in lost market cap value it had lost since the September 11th attacks. Despite the encouraging rally, many investors are understandably shaken by the ...Read More

  • Will McClatchy

    Financial Advisors Defect to Indexing

    4,909
    by Will McClatchy — Thursday, October 11, 2001

    Financial advisor firms have found it hard to transition from actively managed, commissionable products to indexed, fee-based services, but another important defection to the indexing corner recently took ...Read More

  • Will McClatchy

    On the Lighter Side

    6,535
    by Will McClatchy — Tuesday, October 9, 2001

    "There are three kinds of people in the world. Those who can count and those who can't!." - J.R. Dicks... Financial Advice in Tough ...Read More

  • Jim Wiandt

    Passive Investing Trends:

    5,427
    by Jim Wiandt — Friday, October 5, 2001

    Index funds are on the rise. Assets flowing into index mutual funds have been rapidly growing both in absolute terms and relative to inflows into actively-managed funds. The million-dollar question is whether ...Read More

  • Federal Reserve Rates at 39-Year Low

    4,574
    by IndexFunds.com Staff — Tuesday, October 2, 2001

    The Federal Reserve today lowered the Fed Funds rate to a Japanesque 2.5%. The announcement came as consumer confidence plummeted and the economy continued to show signs of weakness. The Fed rate is the lowest ...Read More

  • The American Way of Life

    4,738
    by Herb Blank — Wednesday, September 26, 2001

    The greatest threat to the American way of life, at this point in time, comes from America. There is no question about the magnitude of the atrocities. There is no justification for the attacks, regardless of ...Read More

  • Larry Swedroe

    Do You Believe That Your Fortune Is In The Stars?

    5,650
    by Larry Swedroe — Tuesday, September 25, 2001

    The brand that has emerged as dominant in the 1990s is not Fidelity, Putnam, or even Merrill Lynch-but instead is Morningstar.[/:Author:] —R. Pozen, The Mutual Fund Business, 1998, p.75 Perhaps the most ...Read More

  • The ETF vs. Open-End Index Fund Shootout

    4,683
    by William Bernstein — Monday, September 24, 2001

    I have to admit I've been dubious about the exchange-traded fund format. I just couldn't figure out the why of these things, aside from fees, commissions, and sending financial journalists' kids to private ...Read More