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Not ALL Milk and Honey - Index Fund Managers and the Not So Delicate Rebalance

5,275
by Sharon Rockey
Wednesday, July 26, 2000

Maybe you thought the average index fund manager had a pretty cushy job. After all, they are not out there in the front line trenches picking off portfolio stocks like the managers of active mutual funds. Talk to an index fund manager, though and he'll ...Read More

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  • Jim Wiandt

    Diversifying Internationally - Safe and Sensible

    6,436
    by Jim Wiandt — Tuesday, July 25, 2000

    You've got a house, a broad section of the U.S. Market, and some bonds. You think you're diversified? Think again. Without a healthy allotment of international stocks, your porfolio is not as diversified as it should be. ...Read More

  • NYSE Looks to Challenge American Exchange ETF Hegemony

    5,108
    by IndexFunds.com Staff — Thursday, July 20, 2000

    There are currently 58 exchange-traded funds available to investors. Their combined assets amount to some $47 billion. Every one of them trades on the American Stock Exchange (AMEX). This may soon change. The New York Stock Exchange (NYSE) today expressed ...Read More

  • Jim Wiandt

    Fortune to Create Exchange-Traded Funds

    5,277
    by Jim Wiandt — Wednesday, July 19, 2000

    The latest in a procession of exchange-traded funds (ETFs) to enter the market comes from Fortune, which has licensed State Street Global Advisors (SsgA) to manage new ETFs based on the Fortune 500 and Fortune e-50 stock indexes. ...Read More

  • Calvert Group Opens a Socially Responsible Fund of its Own

    5,364
    by IndexFunds.com Staff — Thursday, July 13, 2000

    Socially responsible index pioneer Calvert Group recently launched the Calvert Social Index Fund (ticker symbol: CALVIN) to track the performance of the Calvert Social Index. The Calvert index aims to be the broadest-based, most rigorously screened ...Read More

  • Investors Flunk Vanguard Test

    5,873
    by IndexFunds.com Staff — Wednesday, July 12, 2000

    Mutual fund investors scored an average of 37% on a test of their fund and market savvy. The quiz, sponsored by the Vanguard Group and Money Magazine, tested investor knowledge of mutual funds basics and market ...Read More

  • Jim Wiandt

    Are the Risks of Exchange-Traded Funds

    5,136
    by Jim Wiandt — Friday, July 7, 2000

    A key risk inherent in exchange-traded funds (ETFs) is being misrepresented by its proponents, charges Mercer Bullard and the Consumer Federation of America. Sponsors of ETFs responded variously-challenging the critics' data, agreeing, or vowing to change ...Read More

  • Jim Wiandt

    Are the Risks of Exchange-Traded Funds Being Downplayed?

    5,301
    by Jim Wiandt — Friday, July 7, 2000

    A key risk inherent in exchange-traded funds (ETFs) is being misrepresented by its proponents, charges Mercer Bullard and the Consumer Federation of America. Sponsors of ETFs responded variously-challenging the critics' data, agreeing, or vowing to change ...Read More

  • Indexing on a Shoestring

    7,094
    by Aviya Kushner — Thursday, July 6, 2000

    The biggest excuse small investors make is always lack of cash. But sit back and imagine enjoying the diversification benefits and low cost of indexing for just $50 each month. ...Read More

  • The New Indexing

    12,473
    by Eugene Fama Jr. — Saturday, July 1, 2000

    Old-school indexers claim the market portfolio is the only legitimate stock investment. Tilting a portfolio toward a particular piece of the market like small company stocks or value stocks is seen as stock picking, which in turn is seen as gambling ...Read More

  • Buying Technology Stocks With Exchange Traded Funds

    5,342
    by Max Issacman — Wednesday, June 28, 2000

    These days you can turn on the television, almost 24 hours a day, and see which market savant is buying tech stocks, who has changed their mind and is selling out of tech stocks, who is jumping into biotech stocks, and so forth. ...Read More

  • Does an Investor Who is Younger than 40 Need Bonds?

    5,482
    by Julia Curbo — Thursday, June 22, 2000

    We've been seeing some interesting portfolio mixes lately. One young gentleman raved about his "diversified" portfolio and how well he was doing. He had 50% in an S&P index fund, 20% in the tech laden Janus Growth & Income, and 30% in his employers' (also ...Read More

  • John Spence

    It Pays to be Good

    5,805
    by John Spence — Wednesday, June 21, 2000

    Socially responsible mutual funds were first introduced in the early 1980s, but until recently their performance has lagged the market. The "sin stocks"- those involved in tobacco, weapons development, nuclear power, and pornography-outperformed socially ...Read More

  • Japanese Government Shifts Emphasis to Topix

    5,045
    by IndexFunds.com Staff — Tuesday, June 20, 2000

    The Nikkei 225 Average has long reigned as the dominant Japanese index, but the Tokyo Stock Exchange's Topix index is quickly strengthening its reputation in status-conscious Japan. ...Read More

  • From the Message Boards: Index Funds Disciples Duke it Out

    5,309
    by IndexFunds.com Staff — Friday, June 16, 2000

    Following is a recent letter exchange Jim Wiandt (the Managing Editor at IndexFunds.com, pictured above left) had with Jason Zweig (The Fundamentalist at Money.com, pictured above right). It was posted to the Index Funds Seminar discussion board with ...Read More

  • Jim Wiandt

    Parade of iShares Continues

    8,176
    by Jim Wiandt — Wednesday, June 14, 2000

    Barclays Global Investors continues its rollout of iShares. By mid-July, there will be over 50 domestic and international iShare funds available covering just about every broad U.S. market sector, and most of the major international markets. ...Read More

  • Bogle Wins $25 Bet

    6,881
    by IndexFunds.com Staff — Tuesday, June 13, 2000

    Five years after making the biggest bet of his life, John C. Bogle, founder of the Vanguard Group, collected $25 from Robert Markman of Markman Capital Management. ...Read More

  • Standard & Poor's Sues Vanguard

    5,679
    by IndexFunds.com Staff — Friday, June 9, 2000

    Two indexing heavyweights are sparring over the use of indexes by exchange-traded funds. Standard & Poor's parent company McGraw-Hill sued Vanguard Group June 8th over the use of its flagship S&P 500 Index. ...Read More

  • Jim Wiandt

    Recent Portfolio Theory - Advice in a Multifactor World

    7,534
    by Jim Wiandt — Wednesday, June 7, 2000

    A bewildering array of new portfolio theories confront the investor as he tries to put together an investment strategy. Cochrane's paper touches on some of the more important studies, and ultimately comes to a number of conclusions that should come as no ...Read More

  • Jim Wiandt

    Bush's Plan: Indexing Boon or Market Disaster?

    5,170
    by Jim Wiandt — Wednesday, May 24, 2000

    Republican presidential candidate George W. Bush recently proposed a plan to partially privatize Social Security. Would the plan give a healthy boost to the stock market while shoring up retirement returns, or would it inflate the market into a dangerous ...Read More

  • Jim Wiandt

    Barclay's ETFs in Play - Cheap to Hold, Easy to Trade

    5,348
    by Jim Wiandt — Friday, May 19, 2000

    In a further boon to index investors, Barclays has launched a series of funds known as iShares that have record-breaking low expense ratios. During the month of May, Barclays will commence trading of 14 new funds. Four, tracing the S&P 500, the Russell ...Read More

  • Jim Wiandt

    Vanguard Enters ETF Fray, Bogle Not Sure He Would Have Done It

    5,607
    by Jim Wiandt — Tuesday, May 16, 2000

    The Vanguard Group announced its plan to launch Exchange Traded Funds (ETFs). The funds, called Vipers, would be linked to Vanguard index funds. In a Wall Street Journal interview, Vanguard founder John Bogle said, "Anything that gets investors involved ...Read More

  • John Spence

    First ETFs Launched in Europe

    6,094
    by John Spence — Friday, May 12, 2000

    Riding a wave of popularity in the United States, the first exchange-traded funds (ETFs) to be based in European markets were launched. The new ETFs track indexes in Germany and the United ...Read More

  • Jim Wiandt

    Soros Retreat!

    9,094
    by Jim Wiandt — Thursday, May 4, 2000

    Billionaire George Soros, long an icon to active hedge fund managers, announced his withdrawal from aggressive hedge fund ...Read More

  • Jim Wiandt

    Are Small Cap Index Funds Poised for a Rebound?

    5,330
    by Jim Wiandt — Friday, April 21, 2000

    Small cap stocks have outperformed large cap companies this century over many longer-term periods. In recent years, however, the returns of large cap indexes have dwarfed those of small cap indexes. Does this signify the forthcoming dominance of small cap ...Read More

  • Comparing Different Tax Sheltered Investment Accounts

    5,536
    by IndexFunds.com Staff — Wednesday, April 19, 2000

    Investors have a variety of options when looking to invest their money in tax-sheltered retirement accounts. For investors with more limited income, the traditional IRA allows for an immediate tax deductions. The more recently instituted Roth IRA is ...Read More

  • Index Returns Through 3-31-2000

    5,060
    by IndexFunds.com Staff — Wednesday, April 19, 2000

    Returns are in percentages, all annualized except for 1st Quarter 2000. Example: an investor placing $100 in 3-month T-Bills in 3/31/99 would have approximately $105.20 before fees in 3/31/00. ...Read More

  • Jim Wiandt

    Tax Sheltering Index Funds

    6,300
    by Jim Wiandt — Wednesday, April 19, 2000

    While it may seem counterintuitive, your retirement fund may well be the best place to hold the riskier end of your ...Read More

  • Magellan Finally Dethroned

    6,090
    by IndexFunds.com Staff — Thursday, April 6, 2000

    The eclipse was predicted for years. Finally on April 5 Vanguard 500 became the largest fund in the world with $107.2 billion in assets, surpassing Fidelity's Magellan Fund at $106.9 billion, according to fidelityinvestor.com. ...Read More

  • Will McClatchy

    Closet Index Funds, Investors Don't Ask, Funds Don't Tell

    5,257
    by Will McClatchy — Tuesday, March 28, 2000

    Fans of actively managed mutual funds pay handsomely to try to outperform the S&P 500. But many do not realize that some of their favorite funds resemble the S&P 500 or other index so closely that beating this benchmark by much is unlikely. When fees are ...Read More

  • The Merchants of Greenwich

    5,436
    by William Bernstein — Saturday, March 25, 2000

    Aside from my Simpsons addiction I don't watch much television. But when a friend called me up one evening and told me to catch the PBS/Nova documentary "The Trillion Dollar Bet" I knew I wasn't going to be disappointed. After all, it's not every day that ...Read More

  • Tracking the Nasdaq

    6,642
    by William Jennings — Friday, March 17, 2000

    The Nasdaq index is capturing everyone's interest, but there are precious few ways to invest in it. The performance of the Nasdaq has gone through the roof in the past few years. Created in 1971, it didn't reach 1000 until July 7, 1995; it took less than ...Read More

  • Wash Sale Rules

    10,062
    by IRS — Wednesday, March 1, 2000

    A wash sale occurs when you sell or trade stock or securities at a loss and within 30 days before or after the sale you: Buy substantially ...Read More

  • Exchange Traded Funds: A White Paper

    9,726
    by Jim Novakoff — Thursday, February 24, 2000

    This paper reviews the history of exchange traded funds (ETFs). ETFs, with names such as Spiders and Diamonds, are investments that are both exchange-listed (like corporate equity securities) and open-ended (continuously offering shares like open-ended ...Read More

  • Price War

    8,271
    by IndexFunds.com Staff — Friday, February 18, 2000

    State Street Global Advisors plans to drop fees on its S&P index fund below those of Vanguard, according to a recent SEC filing. ...Read More

  • Dow 36,000!

    5,569
    by William Bernstein — Tuesday, February 15, 2000

    The market can be thought of as a giant tug-of-war between two teams, one of which thinks that the market is too high, the other too low. Straining at the very far right end of the rope are two fellows named James Glassman and Kevin Hassett ...Read More

  • Performance of UK Equity Unit Trusts

    5,041
    by Garrett Quigley — Tuesday, February 1, 2000

    Studies of money manager performance are the bottom line test of market efficiency. They do not claim to uncover specific types of market failure as do the 'anomalies' literature of the 1980s and the behavioural finance literature of ...Read More

  • Professor Fama Answers the Critics

    8,692
    by Eugene Fama Jr. — Wednesday, December 1, 1999

    The earliest Fama-French research into the sources of stock returns generated controversy among academics. Many disputed the research and published their own findings. ...Read More

  • Will McClatchy

    Hulbert Attacks Efficient Market Theory

    5,758
    by Will McClatchy — Tuesday, September 14, 1999

    The New York Times lends great authority to everything it publishes. It is generally thorough and conscientious. That is why it is shameful to see the dignified institution let a paid stock picking professional use it as cover for misleading, simplistic, ...Read More

  • Putting Theory Into Practice

    5,751
    by Jennifer Vanasco — Wednesday, September 1, 1999

    When David Booth, '71, and Rex Sinquefield, '72, left successful, established careers to form their own company with an untried idea, people thought they were crazy. Not just because they were walking away from good jobs with established firms, but ...Read More

  • The Inevitable: An Index Fund for the Internet Sector

    5,293
    by Rahul Seksaria — Friday, July 30, 1999

    Investec Guinness Flight Global Asset Management launched the much awaited no-load Guinness Flight internet.com(TM) Index Fund today, July 30th, 1999. It will be the first index fund tracking the Internet sector. Investors seeking to overweight this ...Read More

  • Fidelity's New "Fund of Funds"

    5,781
    by Bilal Bajwa — Saturday, July 10, 1999

    On July 6, 1999, Fidelity Investments announced a new Four-in-One Index Fund touting it as the "fund of funds". It is a no-load well-diversified balanced fund that invests in both domestic and international equities, and U.S. bonds. The fund's low expense ...Read More

  • Leader of the Pack: The DFA Funds

    6,233
    by Dagen McDowell — Thursday, July 8, 1999

    the firm takes a more academic approach to determining the benchmarks for its funds, most of which are small-cap- or value-oriented. ...Read More

  • Random Drift and Asset Allocation

    5,638
    by David Booth — Thursday, July 1, 1999

    A doubling of the price-earnings ratio occurs when r-g is cut in half. If r-g is 6%, then the P/E ratio for a stock or index is 16.7. If r-g is 3%, then the P/E ratio is ...Read More

  • Are TIPS Tops Among Bond Funds?

    5,531
    by Jonathan Clements — Thursday, June 24, 1999

    In her June 21, 1999 Wall Street Journal article, "Discovering Inflation-Indexed Bond Funds," Karen Damato takes a look at bond funds specializing in a recent innovation of the U.S. Treasury - inflation-indexed bonds, more commonly known as TIPS (Treasury ...Read More

  • "Funds vs. Indexes: Data are Misleading"

    5,755
    by Jonathan Clements — Tuesday, June 15, 1999

    Mr. Clements examines the reasons why actively-managed diversified U.S. stock funds have been trailing the Standard & Poor's 500 Stock Index's gain while international funds have been able to beat Morgan Stanley's Europe, Australasia, and Far East (EAFE) ...Read More

  • "Monkey Business"

    5,542
    by Scott Woolley — Monday, June 14, 1999

    "At first glance, the professional money managers seem to be providing real value to their followers. On closer examination, it seems that buying their favorites is no better than throwing darts," writes Woolley. If the pros can't beat the market, then ...Read More

  • Interview with Eugene Fama

    7,851
    by Eugene Fama — Tuesday, June 1, 1999

    Eugene F. Fama is on the Board of Directors of Dimensional Fund Advisors. He is a member of their investment committee and serves as an investment strategist. Professor Fama received his Ph.D. from the University of Chicago in 1964 and he also holds an ...Read More