Articles (1,565)

10,264,397 views

Featured Article


Investors Flunk Vanguard Test

5,720
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

Article Library

  • Jim Wiandt

    Are the Risks of Exchange-Traded Funds

    4,994
    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?

    5,194
    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

    6,959
    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

    11,850
    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

    5,187
    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?

    5,354
    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

    5,693
    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

    4,927
    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

    5,167
    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

    7,668
    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

    6,732
    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

    5,550
    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

    7,363
    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?

    5,039
    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

    5,182
    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

    5,450
    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

    5,911
    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!

    8,717
    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?

    5,220
    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

    5,377
    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

    4,918
    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

    6,104
    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

    5,894
    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

    5,129
    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

    5,302
    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

    6,507
    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

    9,893
    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

    9,518
    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

    7,897
    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!

    5,409
    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

    4,915
    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

    8,440
    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

    5,584
    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

    5,614
    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

    5,142
    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"

    5,616
    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

    6,094
    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

    5,467
    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?

    5,386
    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"

    5,626
    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"

    5,374
    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

    7,677
    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

  • 100 Ways to Beat the Market

    5,380
    by Gene Walden — Saturday, May 1, 1999

    Since I'm always looking for ways to beat the market (not that I always succeed, mind you), this new gem caught my eye. Two other books by this author have helped me in the past, so I'm naturally interested in any new ones. ...Read More

  • Will McClatchy

    John Bogle on Indexing and the State of the Market

    5,372
    by Will McClatchy — Thursday, April 22, 1999

    Jack Bogle, Chairman of The Vanguard Group and the father of index investing, doesn't like to predict market trends, but he is flatly warning investors not to depend on outsized returns from big stocks. He has little financial incentive to make such a ...Read More

  • Where Have All The Geniuses Gone?

    8,700
    by Time — Monday, March 22, 1999

    THE BRILLIANT MUTUAL FUND MANAGERS OF YORE ARE NEARLY EXTINCT. THE LESS BRILLIANT ARE IN DANGER OF LOSING THEIR JOBS. BECAUSE IN TODAY`S HOT MARKET, INDEX FUNDS ARE ...Read More

  • Will McClatchy

    Even Enhanced Index Funds Trail the Market

    5,770
    by Will McClatchy — Saturday, March 20, 1999

    Enhanced index funds should be in the best position to at least modestly outperform index funds. All a fund manager has to do is stick to the majority of stocks in an index and then overweight a small number to try to eke out enhanced returns. And in ...Read More