Articles (1,644)


Featured Article

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

Article Library

  • 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

  • Dow 36,000 – Fact or Fiction?

    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

    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

    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?

    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

    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 The indices capture the core, ...Read More

  • Indexing the Multinationals

    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

    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?

    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

    by 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

    by 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

  • Selected Top Web Site

    by Staff — Friday, January 1, 1999

    Forbes magazine, in their first "Interactive Money Guide," has chosen 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

    by 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

    by 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

    by 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?

    by 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

    by 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

    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

    Common Sense on Mutual Funds

    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

  • Will McClatchy

    Exclusive Interview: Prof. William Sharpe

    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

    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