Articles (1,558)

9,928,211 views

Featured Article


The Grand Infatuation

5,385
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

Article Library

  • Foreword

    5,518
    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

    5,649
    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

    4,668
    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

    7,807
    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

  • Dow 36,000 – Fact or Fiction?

    4,965
    by Thomas Philips — Friday, January 1, 1999

    In a sequence of op-eds in the Wall Street Journal, an article in the Atlantic Monthly, and a book, James Glassman and Kevin Hassett of the American Enterprise Institute argue that the stock market is undervalued, possibly by a factor of three or more. ...Read More

  • The Coffeehouse Investor

    5,507
    by Matthew Roberts — Friday, January 1, 1999

    Do you ever wonder if financial journalists have real lives? No, really. Each month, Money Magazine, Kiplinger's and all the rest boldly announce the mutual funds you should buy ...Read More

  • Bonds Index Funds Just As Compelling

    4,957
    by Rahul Seksaria — Friday, January 1, 1999

    Growing fears of an overvalued stock market have brought bonds back into the limelight. But investors' dilemma still remains which bond fund to invest in. Bond index funds, with their relatively low fees (around 0.2% compared to over 1% charged by active ...Read More

  • Does the "Index Effect" boost Index Performance?

    4,866
    by Rahul Seksaria — Friday, January 1, 1999

    As indexing gains wider acceptance among the investment community, it might affect security prices in the future. This effect is likely to be most acute for large-cap stocks (S&P 500 Index funds) that have attracted most of the index investments in the ...Read More

  • Hedge Fund Strategy Indices

    5,944
    by Rahul Seksaria — Friday, January 1, 1999

    Hedge Fund Research, a full service financial consulting firm specializing in alternative investments, recently launched indices for a number of hedge fund strategies (available on Bloomberg, Bridge and at www.hfr.com). The indices capture the core, ...Read More

  • Indexing the Multinationals

    7,430
    by Rahul Seksaria — Friday, January 1, 1999

    Dow Jones & Co. Inc. recently launched the Global Titans Index, a 50-stock capitalization-weighted index comprising the world's largest multinational companies. The index represents a well-diversified global portfolio that has delivered marginally better ...Read More

  • Malaysian WEBS A Lesson in Risk, and Some Recent Developments

    5,062
    by Rahul Seksaria — Friday, January 1, 1999

    WEBS are not immune to political and economic turmoil. Many investors were surprised when in September of 1998 Malaysia's central bank introduced exchange controls to prevent capital from leaving the country and stabilize the exchange rate of the ...Read More

  • Small Caps Undervalued?

    5,716
    by Rahul Seksaria — Friday, January 1, 1999

    Small-cap indexing works best when small stock returns exceed those of large stocks. Should there be a resurgence of the small-caps, investors would be better off investing in small-cap index funds rather than an actively managed portfolio of small ...Read More

  • Index Mutual Funds: Profiting from an Investment Revolution

    4,320
    by IndexFunds.com Staff — Friday, January 1, 1999

    Are you an indexer? According to the new book Index Mutual Funds: Profiting from an Investment Revolution, it takes more than just owning an index fund to qualify. Indexers have a good understanding of the many advantages that index funds offer. This ...Read More

  • Index Your Way to Investment Success

    4,546
    by IndexFunds.com Staff — Friday, January 1, 1999

    Among indexing books, Index your Way to Investment Success has the most comprehensive description of how to build an investment plan. It presents a simple investment strategy and then describes ways to enhance the strategy in hopes of higher return. ...Read More

  • IndexFunds.com Selected Top Web Site

    4,491
    by IndexFunds.com Staff — Friday, January 1, 1999

    Forbes magazine, in their first "Interactive Money Guide," has chosen IndexFunds.com as one the top 250 Web Sites on the Internet. The Fall 1999 issue covers sites on investing, banking, home buying, cars, collectibles, travel, sports, and ...Read More

  • Returns Data: 1973-1998

    5,534
    by IndexFunds.com Staff — Friday, January 1, 1999

    The following table shows the returns for major asset classes since 1973. Investors can use this data is to determine the relative risk and return characteristics of the asset ...Read More

  • Returns for CRSP Market Cap Deciles for Various Time Periods

    8,275
    by IndexFunds.com Staff — Friday, January 1, 1999

    The following charts show the total returns for the CRSP (Center for Research in Security Prices, University of Chicago) market cap deciles and the S&P 500 Index. The CRSP deciles are created by taking all of the NYSE stocks (excluding ADR's REIT's, ...Read More

  • Style Drift Illustrated

    5,831
    by IndexFunds.com Staff — Friday, January 1, 1999

    Actively-managed funds often start out as one kind of animal and slowly evolve into something totally different over time. For investors who care about developing asset class portfolios with funds that stay true to their style, this "style drift" is an ...Read More

  • Should You Invest In "Growth", "Value", or Both?

    4,444
    by IndexFunds.com Staff — Friday, January 1, 1999

    There is a big debate going on in the academic community about where the return premium on value stocks comes from. Note that the debate is not whether their is a premium, but rather its ...Read More

  • Winning With Index Mutual Funds

    4,566
    by IndexFunds.com Staff — Friday, January 1, 1999

    You get what you pay for, right? Well, according to the recent book Winning with Index Mutual Funds, on Wall Street nothing could be further from the truth. Most investors end up paying too much in fees for too little in performance. The answer for ...Read More

  • Small Cap Growth Indexing and the Multifactor Three Step

    5,457
    by William Bernstein — Friday, January 1, 1999

    Unless you've just spent the last decade looking for Elvis, you know that indexing most asset classes will beat most active managers. From time to time a majority of active managers in a given asset class will beat indexing, but this usually doesn't last ...Read More

  • Will McClatchy

    Exclusive Interview: Prof. William Sharpe

    5,876
    by Will McClatchy — Friday, January 1, 1999

    PALO ALTO, CALIF. - Few individuals have advanced theoretical underpinnings of index investing more than Professor William Sharpe, STANCO 25 Professor of Finance at Stanford University and Nobel Laureate in ...Read More

  • Will McClatchy

    Rydex on a Wild Ride in '98

    5,140
    by Will McClatchy — Friday, January 1, 1999

    Rydex is proof that smaller index fund groups can still thrive. Securities Data Publishing rated it the fastest growing fund family in 1998, during which time it grew from $1.7 Billion to $4.1 Billion under management. ...Read More

  • Will McClatchy

    Common Sense on Mutual Funds

    5,932
    by Will McClatchy — Friday, January 1, 1999

      Even the smallest library of every serious index investor should contain Common Sense on Mutual Funds, the latest book by John Bogle of The Vanguard Group. As the title promises, this 445-page work is full of common sense and practical advice for the individual investor. ...Read More

  • The Slippery Slope of Fund Expenses

    5,002
    by William Bernstein — Friday, January 1, 1999

    Investors not infrequently founder on the shoals of incorrect assumptions. Among the most prominent are the existence of money manager skill and a simple faith that past asset class returns are precisely predictive of future returns. ...Read More

  • Want to Day Trade the Indexes?

    5,049
    by Rahul Seksaria — Friday, January 1, 1999

    With the huge success of WEBS, Barclays Global Investors recently filed with the SEC to offer 51 open-end domestic index funds. They are revolutionary new products for index investors allowing them to day trade almost all U.S. ...Read More

  • WEBS - A Flexible Way to Span the Globe

    5,148
    by Rahul Seksaria — Friday, January 1, 1999

    Index investors have had limited options in foreign investing, but in the past two years WEBS (World Equity Benchmark Shares) have changed this situation dramatically. WEBS are country-specific indexes (17 so far) that trade like stocks. ...Read More

  • New York Institute of Finance Guide to Mutual Funds 2000

    4,481
    by IndexFunds.com Staff — Friday, January 1, 1999

    Mutual Funds are undoubtedly one of the great financial inventions of all time. Fund investors can get broad diversification and professional management at much lower cost and greater convenience than would be possible otherwise. However, with more than ...Read More

  • How Indexes are created:

    7,961
    by Rahul Seksaria — Friday, January 1, 1999

    Not all indexes are created in the same way. How they are put together can affect investor returns. Three methods primarily used to construct indexes ...Read More

  • Beware the Claims of the Stock Picking Gurus

    4,963
    by Eric Tyson — Friday, January 1, 1999

    It's easy to dismiss the outrageousness of the claims made by someone like Wade Cook. Even if you don't know that Cook has been in trouble with securities regulators and courts for many years now, your common sense tells you that five and six digit ...Read More

  • Indexing Basics: Your Questions Answered

    4,571
    by IndexFunds.com Staff — Friday, January 1, 1999

    What is indexing? Why index? What is an index fund? How do index funds differ from other mutual funds? How does indexing work? Why don't index investors try to beat the market? What is an Exchange-Traded Fund (ETF)? What can an index fund ...Read More

  • Pricewaterhouse

    Twenty-Five Years of Indexing

    5,238
    by Pricewaterhouse — Thursday, August 6, 1998

    A report commissioned by Barclays Global Investors concludes that indexing has saved institutional investors worldwide as much as $105 billion since its inception 25 years ago. The report, entitled "Twenty-Five Years of Indexing," was conducted by ...Read More

  • Engineering Portfolios for Better Returns

    5,913
    by Eugene Fama Jr. — Friday, May 1, 1998

    This isn't surprising. An active manager's primary directive, hardwired into his psyche, is to pick winners. Value investing is about investing in earnings-distressed companies. Picking the big potential earners from the value stock universe is similar to ...Read More

  • An Interview with Eugene Fama

    5,773
    by Peter Tanous — Saturday, February 1, 1997

    Eugene Fama grew up in Boston, a third generation Italian-American. While an undergraduate at Tufts University, he excelled in athletics and majored in French-an inauspicious beginning for a future giant in the field of economics. ...Read More

  • An Interview with Merton Miller

    6,623
    by Peter Tanous — Saturday, February 1, 1997

    Merton Miller's illustrious academic career started at Harvard, from which he graduated in 1943. He spent the next few years in Washington, D.C., working at the US Treasury and the Federal Reserve. He earned his Ph.D. from Johns Hopkins in ...Read More

  • Statement on Risk Disclosure by Mutual Funds

    7,328
    by Financial Economists Roundtable — Wednesday, September 18, 1996

    The growth in the U.S. mutual fund industry in recent years has been explosive. Individuals invest in such funds directly and through retirement funds such as 401(k) plans. With ...Read More

  • Rex Sinquefield

    Active vs. Passive Management

    8,019
    by — Thursday, October 12, 1995

    With respect to market behavior there are, at the extremes, two views. At one extreme is the well-known efficient market hypothesis which says that the prices are always fair and quickly reflective of information. In such a world neither professional ...Read More

  • Rex Sinquefield

    Active vs. Passive Management

    20,007
    by Rex Sinquefield — Sunday, October 1, 1995

    Active management is the art of stock picking and market timing. Passive management refers to a buy-and-hold approach to money management. It can be applied to any asset class: big stocks, small stocks, value or growth, foreign or domestic can all be accessed by passive ...Read More

  • A Work of Art: CRSP's Database

    5,549
    by Marilyn Kun — Wednesday, March 1, 1995

    In 1959, Louis Engel, a vice president at the firm then known as Merrill Lynch, Pierce, Fenner & Smith, telephoned James H. Lorie, '47 Ph.D., (then professor of business administration, now professor emeritus since 1991) and asked whether anyone knew how ...Read More

  • Coming Full Circle

    6,550
    by Marilyn Kun — Wednesday, March 1, 1995

    For Sinquefield, CRSP was a major factor in the decision to come to the GSB. "Basically, financial economics would still be in its nascent stages if it weren't for a database like CRSP," he says. "Academics simply wouldn't have been able to do the ...Read More

  • Darts and the Dow

    7,211
    by Ken Garner — Sunday, December 20, 1992

    How good are the experts? Not very, according to a short-term experiment for the ...Read More

  • Who Needs Experts?

    10,680
    by 20/20 — Friday, November 27, 1992

    The odds are you would be better picking stocks this way; throwing darts at the stock ...Read More