Two factors that can affect a fund’s performance are the level of fund inflows and the trading impact of that inflow, explains Morningstar’s Russel Kinnel in a recent article. For…
Search Results for: low-volatility funds
Factor Investing Can Keep Active Management Relevant
Despite its recent troubles, active management remains relevant, but its future “lies in low expenses that allow investors to enjoy a comfortable share of returns,” according to a recent article…
Stock-Pickers Beware: Bots Are Here
…beta” index funds, on the other hand, have been able to beat the market at very low-cost to the investor. Kaissar offers data (provided by Dartmouth professor Kenneth French) showing…
Ritholtz Says Stock-Picking is Still Alive if Not Kicking
…both professional investors and individuals.” We have a much greater understanding of investor psychology, and this “makes the case for low-cost index investing even more compelling.” Quantitative studies, writes Ritholtz,…
Active Fund Performance Improved in Recent Months
…lower-cost index-tracking funds, a trend that hounded many of them in recent years.” While investors continue to withdraw money from actively managed funds, says WSJ, they pulled out less in…
Dalbar: Average Investor Underperformance Reflects Emotional Investing
The annual study published by financial research firm Dalbar reports that the average investor in U.S. stock mutual funds earned 7.3% last year versus the S&P 500’s 12% return. This…
European Stocks Look Appealing Compared to U.S. Shares
…on price-book value.” Overseas equity funds, however, are not experiencing large inflows according to data provider EFPR—a mere $245 million compared to $32 billion for U.S. stocks. Political uncertainty may…
Hulbert on the Likelihood of a Market Bubble
…warnings right now. Market volatility in recent months has been decreasing, for example, not increasing. And the percentage of firms issuing equity is below the historical average.” …
BlackRock to Expand Quant Investing
Actively managed funds at BlackRock, the world’s largest fund company, are facing the new reality of quantitative investing, according to this week’s New York Times. The exchange-traded-fund business the firm…
Ned Davis Sees a Passive Investing Bubble Expanding
…Davis Research) believes a passive investing bubble is expanding. “Not only have index funds outperformed, but the crowd has noticed,” according to Davis, who sees the next five years as…