Articles (1,609)


Featured Article

Bogle Wins $25 Bet

by 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

Article Library

  • Standard & Poor's Sues Vanguard

    by 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

    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?

    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

    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

    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

    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!

    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?

    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

    by 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

    by 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

    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

    by 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 ...Read More

  • Will McClatchy

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

    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

    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

    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

    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

    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

    by 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!

    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

    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

    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

    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

    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

    by Rahul Seksaria — Friday, July 30, 1999

    Investec Guinness Flight Global Asset Management launched the much awaited no-load Guinness Flight 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"

    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

    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

    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?

    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"

    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"

    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

    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

    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

    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?

    by Time — Monday, March 22, 1999


  • Will McClatchy

    Even Enhanced Index Funds Trail the Market

    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

  • Will McClatchy

    Schwab Backs Indexing

    by Will McClatchy — Tuesday, March 16, 1999

    The largest US discount brokerage firm released a study that emphasizes indexing as the core of an optimal long-term equity portfolio. The study by the Schwab Center Investment Research at Charles Schwab & Co. disputes the benefits of an all-actively ...Read More

  • Will McClatchy

    Smart Timing

    by Will McClatchy — Monday, March 15, 1999

    PHILADELPHIA, PENN. - Market timing is viewed almost as skeptically as stock picking by many indexers. But officials at new money manager Aexpert Advisory, Inc. insist they have a unique timing strategy. It involves artificial intelligence techniques to ...Read More

  • "Mining Fool's Gold"

    by Thorley McQueen — Monday, March 15, 1999

    The authors' paper urges investors to view all "foolproof" investment strategies and trading rules with some degree of skepticism. They remind readers of the pitfalls of data mining and how to avoid them. Their analysis subscribes to The Random Walk ...Read More

  • Consumer Reports Endorses Indexing, Confusedly

    by Staff — Monday, March 1, 1999

    Consumer Reports, the non-profit consumer advocate magazine, recommends an investment philosophy that is remarkably similar to indexing in its lead article "Mutual Funds: Which way is Up?" of its March issue. ...Read More

  • Vanguard Lowers but Still Defends Entry Fees

    by Staff — Monday, March 1, 1999

    VALLEY FORGE, PENN. - Index fund giant Vanguard Group lowered entry fees for a mid-cap and two small-cap funds. The Vanguard Mid-Cap Index Fund removed its .25% entry fee entirely, while the Small-Cap Growth and the Small-Cap Value Funds halved their ...Read More

  • Business Week Lauds Indexing

    by Staff — Monday, February 22, 1999

    Business Week's courageous February 22 articles on index indexing, are obligatory reading for any retail investor. Tapping a strong array of data surrounding indexing, Business Week writes convincingly and elegantly about the key issues in ...Read More

  • Will McClatchy

    Islamic Index Tracks "Value" through Morality

    by Will McClatchy — Monday, February 15, 1999

    BAHRAIN — As with any form of investment, indexing is affected by cultural and religious values. A new example is than Dow Jones' new Islamic Market Index, which helps Islamic investors and banks participate in equities. ...Read More

  • The Grand Infatuation

    by William Bernstein — Friday, January 1, 1999

    Troll the latest reincarnation of the office water-cooler-investor internet chat rooms and discussion boards-and you'll find abundant evidence of romantic disaster in the making. No, I'm not suggesting that these forums are hotbeds of amorous intrigue, ...Read More

  • Foreword

    by John Bogle — Friday, January 1, 1999

    The simple case for index funds is part theory, part practice, and part arithmetic. Theory says that since (a) gross returns earned by investors as a group must equal the gross returns earned by the total stock market, (b) net returns - after advisory ...Read More

  • Will McClatchy

    SPDRs and Diamonds

    by Will McClatchy — Friday, January 1, 1999

    Mutual funds are not the only way to invest in domestic indexes. Increasingly popular are so-called SPDRs or Standard & Poor's Depository Receipts, which track indexes just like a fund but trade like a stock on the American Stock Exchange. ...Read More

  • Exchange-Traded Indexed Securities

    by Michael O Neil Meditz — Friday, January 1, 1999

    Exchange-traded funds (ETFs) are increasing in popularity, as they are often responsible for approximately 50% of the daily trade volume on the American Stock Exchange ...Read More

  • Mutual Funds For Dummies

    by Emily Moore — Friday, January 1, 1999

    I wouldn't call myself a dummy. But, between me and my husband, I was the ignorant one when it came to mutual funds. He handles our investments, and he always keeps me informed, but I never really cared to know more than I had ...Read More