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Larry Swedroe

Risk and Expected Return

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 more impressive are the returns of the last ...Read More

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  • Forbes Recognizes and ETFzone as Best of Web

    by Staff — Saturday, November 17, 2001

    Both the site and its ETFzone were awarded Best of the Web, with the site finishing 4th out of 20 sites in the Fund Selection category and the ETFzone also being awarded Best of the Web in the Exchange-Traded Fund category. ...Read More

  • iShares Global Sector Funds hit the Market

    by 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 and healthcare sectors. They are based on ...Read More

  • iShares Make Strong Gains as VIPERs Crack $1 Billion

    by 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 significant gains. iShare's breakthrough 35 bp ...Read More

  • Larry Swedroe

    The Road Less Travelled

    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 passive investing is the strategy most likely to ...Read More

  • Jim Wiandt

    ETF Regulatory and Tax Complications

    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 structure of ETFs runs counter to some ...Read More

  • The Societal Risk Premium

    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 fascinating. After all, it implies a society that is ...Read More

  • Jim Wiandt

    Let The Commenting Begin

    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 presently occupied only by index funds. The AMEX ...Read More

  • Fed Rates Lowered by Another Half Percent

    by 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 the first time the rate had slid as low as 2% ...Read More

  • Barclays Introduces First Natural Resource ETF

    by 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 market capitalization-weighted index of 112 ...Read More

  • Bogle Speaks!

    by 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

    by 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 activity, are no longer passive investment ...Read More

  • Vanguard Debuts Term Life, Private Equities

    by 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 financial services. ...Read More

  • Some Germans Stock Up on Index Certificates,

    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. There are arbitragers who play ETFs against ...Read More

  • History in Perspective - After the Storm

    by 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 terrorist attacks and a future clouded with ...Read More

  • Will McClatchy

    Financial Advisors Defect to Indexing

    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 place. ...Read More

  • Will McClatchy

    On the Lighter Side

    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:

    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 these inflows have resulted from investors ...Read More

  • Federal Reserve Rates at 39-Year Low

    by 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 it has been since 1962. ...Read More

  • The American Way of Life

    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 the attackers motives. It was an heinous act ...Read More

  • Larry Swedroe

    Do You Believe That Your Fortune Is In The Stars?

    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 popular approach to selecting mutual funds is to ...Read More

  • The ETF vs. Open-End Index Fund Shootout

    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 school. My first encounter with them—the WEBS ...Read More

  • Will McClatchy

    Panic sellers did not profit on Monday

    by Will McClatchy — Monday, September 17, 2001

    After watching today's low closing prices, US equity investors who held onto stocks out of patriotism today might have felt a bit foolish. In reality they did just fine. Everyone in the US market got hit today, and selling on the morning the markets ...Read More

  • Will McClatchy

    Democracy and Markets under Attack

    by Will McClatchy — Tuesday, September 11, 2001

    Attacking a democracy will only make it rally in unity. Attacking a physical icon of capital management will only disperse the administration of capital flows. Americans have rallied defiantly against cowardly attacks on civilians by a hidden group. The ...Read More

  • From Our Canadian Bureau: Barclays Helps Retirees With New ETF

    by Dan Hallett — Sunday, September 9, 2001

    New Barclays RSP-Eligible EAFE ETF Barclays Global Investors Canada Limited has finally announced the launch of the much anticipated fully RSP-eligible EAFE ETF it has been promising for several months. This offering, originally planned for a February ...Read More

  • ProFunds Launches Six New Index Funds

    by Staff — Wednesday, September 5, 2001

    Maryland-based fund shop ProFunds yesterday launched six index funds based on the following indexes: S&P Midcap 400, S&P Midcap 400/Barra Value, S&P Midcap 400/Barra Growth, Russell 2000, S&P Smallcap 600/Barra Value, and S&P Smallcap 600/Barra Growth. ...Read More

  • ETF Assets Fall in Weak Market

    by Staff — Monday, August 27, 2001

    Exchange-traded fund (ETF) assets fell slightly in July, underscoring the current climate of soft equity prices. The slim $40 million decline occurred despite the fact that issued shares exceeded redeemed shares by $2.58 billion, according to Investment ...Read More

  • John Spence

    SEC Denies ICI Petition to Regulate Folios

    by John Spence — Friday, August 24, 2001

    Chalk one up for do-it-yourself investors. The Securities and Exchange Commission (SEC) released a letter yesterday denying an Investment Company Institute (ICI) petition filed in March to regulate online stock baskets, or folios, as mutual funds. ...Read More

  • The $500 Billion Hedge Fund Folly

    by Forbes — Monday, August 6, 2001

    Mediocre returns, outrageous fees and a whiff of scandal have not stopped the hedge fund business from enjoying explosive growth in the past decade. Because these ...Read More

  • Three ETFs Begin Trading on Big Board

    by Staff — Thursday, August 2, 2001

    Three prominent exchange-traded funds (ETFs) began trading on the New York Stock Exchange (NYSE) on Tuesday, July 31 - the Nasdaq-100 Tracking Stock (QQQ), SPDR 500 (SPY), and Diamonds (DIA). They managed to attract 11%, 20%, and 29% of trading for the ...Read More

  • Larry Swedroe

    How The Price You Pay Impacts Returns

    by Larry Swedroe — Thursday, July 26, 2001

    When forecasting investment returns, individuals often make the mistake of simply extrapolating historic returns into the future. In addition, investors make the mistake of "recency." Bull markets lead investors to expect higher future returns, and bear ...Read More

  • News From the Week

    by Staff — Wednesday, July 25, 2001

    The Vanguard Group said it will jack up the minimum initial investment for its Selected Value Fund from $3,000 to $25,000, effective July 23. Vanguard also indicated that a 1% redemption fee would be assessed to shares redeemed within five years of ...Read More

  • John Spence

    Who Wants to Run a Mutual Fund?

    by John Spence — Tuesday, July 24, 2001

    I cringe when I hear comparisons between investing and sports, but I can't resist this time. When it comes to stock-picking, we're a nation of Monday morning quarterbacks. ...Read More

  • New iShares Based on Russell Mid-Cap Indexes

    by Staff — Friday, July 20, 2001

    Barclays Global Investors launched three iShares on the American Stock Exchange today. The new exchange-traded funds (ETFs) are tied to the Russell Midcap index, Russell Midcap Value index, and Russell Midcap Growth index. ...Read More

  • AMEX Beefs Up ETF Development

    by Staff — Wednesday, July 18, 2001

    The American Stock Exchange (AMEX) today announced the creation of a new business unit that will specialize in ETF development to leverage its position as a global leader in exchange-traded funds (ETFs). AMEX was instrumental in the development and ...Read More

  • John Spence

    ICI Urges SEC Not to Force More Frequent Fund Disclosures

    by John Spence — Tuesday, July 17, 2001

    Investment Company Institute (ICI), the mutual fund industry's trade group, yesterday released a statement outlining why it believes average investors would actually be harmed by more frequent holdings disclosures by mutual funds. Additionally, ICI ...Read More

  • John Spence

    Bank of New York Has ADR Index ETFs in the Works

    by John Spence — Monday, July 16, 2001

    Many institutional and retail investors like exchange-traded funds (ETFs) for cheap exposure to foreign markets. Bank of NY wants to drive costs down even lower, and has filed an exemptive application with the Securities and Exchange Commission (SEC) to ...Read More

  • Three New iShares for Tech Junkies

    by Staff — Thursday, July 12, 2001

    Barclays Global Investors (BGI) will launch three iShares ETFs tied to the following Goldman Sachs technology indexes: Networking, Semiconductors, and Software. They will begin trading on the American Stock Exchange (AMEX) starting July ...Read More

  • John Spence

    E*Trade Gets Dinged by NASD for Tech Index Fund Ad

    by John Spence — Monday, July 9, 2001

    Remember those online broker television ads of yesteryear that led you to believe that stock picking was so easy that even ADD-afflicted office punks and altruistic truck drivers could point-and-click their way to fabulous wealth in their spare time? ...Read More

  • Eugene F. Fama Jr, Vice President DFA

    What Makes an Asset Class?

    by Eugene Fama Jr. — Sunday, July 1, 2001

    Sometimes NASDAQ is referred to as an asset class, but it's not. It's an exchange that contains several asset classes. A partial index of NASDAQ stocks might proxy for a tech stock "asset class"—but there's little theoretical reason to think tech stocks ...Read More

  • Vanguard Files to Launch Extended Market ETF

    by Staff — Friday, June 29, 2001

    Indexing giant Vanguard today filed with the SEC to launch an extended market exchange-traded fund (ETF) tied to the Wilshire 4500 index. As with the recently-released Total Stock Market VIPERs (Vanguard Index Participation Equity Receipts), the extended ...Read More

  • Jim Wiandt

    NYSE-listed ETF to be Tied to Broad Chinese Index

    by Jim Wiandt — Thursday, June 28, 2001

    How's this for a macroeconomic play: short the declining superpower (U.S.A.) and go long on the up-and-comer (China). Until now it hasn't been possible. Coming soon, though, to a broker near you: an NYSE-listed ETF that tracks 25 of the most liquid stocks ...Read More

  • John Spence

    Paradise Lost? - S&P 500 Gets Ripped

    by John Spence — Wednesday, June 27, 2001

    A recent Money magazine article by mutual fund columnist Jason Zweig ("Is the S&P 500 rigged?") has managed to put a fright into at least a few of the investors who have an estimated $1 trillion in index funds pegged to the broad market benchmark. And ...Read More

  • From Our Canadian Bureau: iUnits Distributions

    by Dan Hallett — Thursday, June 21, 2001

    Barclays Global Investors (BGI) announced this week estimated distributions for its Canadian based exchange-traded funds (ETFs), known as iUnits. Unitholders of record as of June 27, 2001 will receive the distribution on June 28. ...Read More

  • AMEX and Tokyo Exchange to Cross-List ETFs

    by Staff — Tuesday, June 19, 2001

    The American Stock Exchange (AMEX) and the Tokyo Stock Exchange inked a deal today to cross-list and trade U.S. and Japanese exchange-traded funds (ETFs). The alliance is the latest move by AMEX to set up a global trading platform for ETFs. The exchange ...Read More

  • Barclays Global Investors to Rebalance MSCI iShares Early

    by Staff — Thursday, June 14, 2001

    Barclays Global Investors (BGI) says it will rebalance its iShares exchange-traded funds (ETFs) pegged to MSCI indexes by the end of August 2001. MSCI is adjusting its equity indexes for free-float weighting and broader market coverage, and will complete ...Read More