The New Yorker reports on concerns that the growth of index funds may distort the market. Since Jack Bogle introduced the first indexed mutual fund in 1975, their low fees…
Search Results for: low-volatility funds
Why Smart Beta May Not Be So Smart Right Now
…weighting holdings by their market capitalizations, smart beta approaches often use quality metrics such as profits, debt levels, and share volatility to weight stocks within the index. Reese notes that…
DoubleLine's Gundlach Identifies Downward Pressures, Warns Against Fed Rate Hike
…“negative rates are bad for the banking system.” He identified gold as a positive (“stay long gold, trim gold miners”) and suggested it may be a bulwark against low or…
Style Drift Can Play a Role in Outperformance
…a virtue instead of a sin” by ranking 106 similar funds according to their Sortino ratio over a 15-year period, which reflects return in relation to volatility. In the Journal…
Jack Bogle's Advice for the Individual Investor
…believe it.” Bogle explained that he recommends index funds so strongly because they “eliminate th[e] three principle risks of equity investing” – “the risk of picking individual stocks,” “the risk…
Sticking With the Best Alpha Generators
…a mutual fund. According to Barron’s, his firm’s typical portfolio has eight to nine mutual funds, usually a third from Vanguard, a third from Fidelity, and a third from other…
The Small-Cap Premium Lives Despite Its Doubters
…small-cap premium,” such as that small companies tend to be more leveraged, have more earnings volatility, and lower levels of profitability. He also highlights a 2002 research article that found…
AAII Sentiment Survey – A Contrarian Indicator?
…registered its lowest bullish reading in 17 years on March 5, 2009 – precisely the beginning of the current bull market. However, a similarly low bullish reading in January 2008…
Valuations have One Top Manager Sitting on Lots of Cash
Hamish Douglass, manager of the Magellan Global Equity Fund, is holding over 15% of the fund’s $5.4 billion in cash, Financial Advisor reports. The fund beat 99% of its competitors…
Top Economist Ed Hyman Says Recession is a Long Way Off
…of the effects of low oil prices is mixed: he expressed concerns about the negative economic impact of industry contraction, but also “believes that lower energy prices will help delay,…