Investors seeking exposure to the U.S. stock market often turn to traditional S&P 500 index funds, which are weighted by market capitalization. However, this approach can lead to concentration risk,…
Tag: index funds
Index Inclusion Effect Not Cause For Concern
On a late Friday afternoon in June 2018, the S&P Index Committee announced it was adding Fleetcor Technologies to the S&P 500. On Monday, Fleetcor jumped 6.45% even as the…
Facebook & Netflix Are Value Stocks Now
The FTSE Russell indexes will reshuffle its benchmarks, with Meta, Netflix and PayPal moving into the Russell 1000 Value Index as their weights lighten up in the Russell 1000 Growth…
Index Funds Will Change The World, But Not In A Good Way, Says Munger
Billionaire and vice chairman of Berkshire Hathaway Charlie Munger says that the rise of index funds will “change the world”—but not for the better, reports an article in The Wall…
Sector Shake-Up Could Have Huge Impact
MSCI, which owns the Global Industry Classification Standard (GICS), has proposed a set of changes to the way it classifies companies according to sectors, reports Barron’s. The changes could affect…
The Great Index Fund Takeover
A recent Bloomberg article describes the ongoing trend toward index investing as “one of the biggest shifts in corporate power in a generation,” citing the “Big Three” firms of BlackRock,…
Ritholtz: Index Funds Can Weather Cruel Markets
In an article for Bloomberg, columnist Barry Ritholtz debates the claim that passive investors will bear the brunt of an equity slump. Specifically, Ritholtz refutes the argument presented by Times…
Are Index Funds as Cheap as You Think?
In a recent Wall Street Journal article, columnist Jason Zweig rebuts an argument that index fund expenses are drastically understated. The argument comes from veteran value investor David Winters, portfolio…
Peter Lynch Protégé Says "Stocks are Fine Today"
Jeff Vinik, who ran Fidelity’s famed Magellan Fund from 1992 until before he left the firm in 1996, became well known for his aggressive investing style, according to a recent…
Shift to Passive Investing May Not Influence Stocks Like Some Think
By Jack M. Forehand — The massive move investors have made to passive vehicles over the past few years has been truly astounding. With most active managers underperforming their benchmarks…
