Tag Archives: index funds
Peak Passive and Market Efficiency
With more than $7 trillion tracking the S&P 500 alone, we estimate that index funds now encompass between a quarter and a third of the capitalization of the U.S. equity market. This extraordinary growth must surely rank as one of the most important developments in contemporary financial history. When will it end? For at least…
- Categories Equities
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Alpha, Omicron: Why?
Over the past week, global financial markets have been roiled by the discovery of the “Omicron” COVID-19 mutation. It’s far too soon to know how much this new variant will impact the world’s economy—but its discovery suggests an interesting thought experiment in, of all things, corporate governance. The experiment is this: suppose Omicron turns out…
- Categories Equities, S&P 500 & DJIA
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Avoid Unintended Stock Market Bets by Understanding Benchmarks
In a recent Financial Planning article,[1] Craig Israelsen advocated using stock market size segments to construct portfolios rather than a total market approach. His conclusion may be perfectly valid for market participants willing and able to bear greater small-stock exposure, but his analysis fails to adequately take account of this source of risk. He compared…
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Getting What You Pay For
Today’s Wall Street Journal, among others, reported on a recent study by the Maryland Public Policy Institute arguing that the public pension funds which pay the highest fees haven’t reaped the highest investment returns. In fact, the study shows, it’s just the opposite — for the 5 years ended June 2012, the 10 states which…
- Categories Equities, S&P 500 & DJIA, Strategy
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- Equities, S&P 500 & DJIA, Strategy
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